Does the Caption By Hyatt franchise agreement define 'Competing Brand Owner'?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
"Competing Brand Owner" means any entity that (a) is either a franchisor or owner of a Competing Brand (defined below), (b) manages or otherwise operates hotels exclusively for the franchisor or owner of a Competing Brand, or (c) is an Affiliate of any entity described in (a) or (b) above. A "Competing Brand" is a hotel concept that has at least five (5) hotels operating under that concept's trade name anywhere in the world and that, in Hyatt's reasonable opinion, competes with Brand Hotels. For the avoidance of doubt, Franchisee shall not be deemed a Competing Brand Owner under this Agreement merely because Franchisee's Affiliates operate (as franchisees and/or managers) hotels of multiple Competing Brands.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, the franchise agreement does define "Competing Brand Owner." The agreement specifies that a "Competing Brand Owner" is any entity that is either a franchisor or owner of a Competing Brand, manages hotels exclusively for a Competing Brand's franchisor or owner, or is an affiliate of such an entity.
A "Competing Brand" is defined as a hotel concept with at least five hotels operating under the same trade name anywhere in the world, which Hyatt reasonably considers to be a competitor to Brand Hotels (Caption By Hyatt hotels). However, the agreement clarifies that a franchisee is not considered a Competing Brand Owner simply because their affiliates operate hotels of multiple Competing Brands as franchisees or managers.
This definition is important because it clarifies who Caption By Hyatt considers to be a competitor and sets the stage for potential restrictions or obligations related to competitive activities. For a prospective franchisee, this means understanding the scope of competitive restrictions and ensuring that their existing or planned business activities do not conflict with this definition. It also provides reassurance that simply having affiliates involved with other hotel brands will not automatically disqualify them from being a Caption By Hyatt franchisee.