Does the Caption By Hyatt franchise agreement allow for deviations in ADS usage?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
- "ADS" means the online travel agencies and other alternative distribution systems that Hyatt may periodically authorize or require for Franchisee's Hotel and other similarly situated Brand Hotels (subject to Reasonable Deviations).
- 15.3 Suspension of Rights and Services.
Upon Franchisee's failure to remedy any default or failure to comply with this Agreement specified in any written notice issued to Franchisee under Section 15.1 (following any cure period specified for such default or failure in Section 15.1) or Section 15.2, Hyatt has the right, until Franchisee remedies such default or failure to Hyatt's satisfaction, to (a) suspend Franchisee's right to use, and Franchisee's access to, the CRS, the GDS and ADS, and/or other System Services; (b) remove the Hotel from Hyatt's advertising publications and programs and/or remove the Hotel's webpage from the Hotel System
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, the brand permits 'Reasonable Deviations' regarding the use of Alternative Distribution Systems (ADS). ADS refers to online travel agencies and other alternative distribution systems that Hyatt may authorize or require for the franchisee's hotel and other similarly situated Brand Hotels. This allowance for 'Reasonable Deviations' suggests that while Caption By Hyatt may have preferred or required ADS channels, franchisees may have some flexibility to negotiate or adjust their participation based on specific circumstances.
This flexibility could be beneficial for franchisees who have unique market conditions or established relationships with alternative distribution channels. However, it's important to understand what constitutes a 'Reasonable Deviation' as defined by Caption By Hyatt. Franchisees should seek clarity on the criteria used to evaluate deviation requests and the process for obtaining approval.
It is also important to note that while Caption By Hyatt allows for reasonable deviations, failure to comply with the franchise agreement, including the use of approved ADS, can lead to suspension of rights and services. Specifically, Hyatt has the right to suspend the franchisee's right to use, and the franchisee's access to, the CRS, the GDS, and ADS, and/or other System Services if the franchisee fails to remedy any default or failure to comply with the agreement.