How does the Caption By Hyatt franchise agreement define 'Affiliate'?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Affiliate" means, with respect to a party, any person or entity directly or indirectly owned or controlled by, under common control with, or owning or controlling, such party. For purposes of this definition, "control" means the power to direct or cause the direction of management and policies.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, an 'Affiliate' is defined in Exhibit A of the Brand Hotel Franchise Agreement. The term refers to any person or entity directly or indirectly owned or controlled by, under common control with, or owning or controlling, a party involved in the agreement.
For the purpose of this definition, 'control' signifies the power to direct or cause the direction of management and policies. This definition is important because the actions of an affiliate can have implications for the franchisee's agreement with Caption By Hyatt.
This broad definition of 'Affiliate' is commonly used in franchise agreements to ensure that all related parties are bound by the terms of the agreement and to prevent franchisees from circumventing their obligations through related entities. Prospective Caption By Hyatt franchisees should understand this definition and how it may affect their operations and obligations under the franchise agreement.