Does the Caption By Hyatt Franchise Agreement include an article about the development and opening of the hotel?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
ARTICLE II
DEVELOPMENT AND OPENING OF THE HOTEL
2.1 Hotel Development. Franchisee shall, at its expense and with all reasonable diligence, develop or renovate the Hotel at the Site in accordance with the provisions of Exhibit B-3 and the Hotel System, including the Design and Construction Standards, as well as applicable law. Franchisee acknowledges and agrees that the selection of the Site for the Hotel or the failure of Hyatt to object to the Site, does not constitute an assurance, representation or warranty by Hyatt of any kind, express or implied, as to the suitability (commercially or otherwise) of the Site for the Hotel or for any other purpose. Hyatt shall not be responsible for the failure of the Site approved by Hyatt to meet expectations as to revenue, income or operational criteria. Franchisee further acknowledges and agrees that approval of the Site for the Hotel is based on Franchisee's own independent investigation of the suitability of the Site. Franchisee may not make any material changes to plans approved by Hyatt (including any changes to any structural or life safety equipment or systems, the number and/or type of guest rooms or common areas, or any architectural features) without Hyatt's prior written consent.
2.2 IT Project Management Services.
- (a) IT Project Management Services.
Franchisee shall install information technology system(s) for the Hotel in accordance with the System Standards.
To assist Franchisee and Franchisee's consultants in installing and implementing information technology system(s) that meet Hyatt's requirements and in consideration of the IT Project Management Services Fee, Hyatt will provide the IT Project Management Services in connection with the opening of the Hotel in accordance with this Section 2.2.
Hyatt will staff the IT Project Management Services using its employees or third party contractors, as Hyatt determines.
- (b) Franchisee Responsibilities.
Franchisee agrees to perform, in a timely manner, the tasks identified as Franchisee's responsibilities in Exhibit E.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, the Franchise Agreement does include an article specifically addressing the development and opening of the hotel. Article II of the agreement is titled "DEVELOPMENT AND OPENING OF THE HOTEL." This section outlines the franchisee's responsibilities in developing or renovating the hotel at their own expense, ensuring it aligns with Exhibit B-3, the Hotel System, Design and Construction Standards, and all applicable laws.
The agreement clarifies that Caption By Hyatt's approval of the site does not constitute a warranty regarding its suitability for the hotel or its potential revenue and operational success. The franchisee is responsible for conducting their own independent investigation to determine the site's suitability. Any material changes to approved plans require Caption By Hyatt's prior written consent, especially changes affecting structural or life safety equipment, the number/type of guest rooms, common areas, or architectural features.
Furthermore, Section 2.2 details IT Project Management Services that Caption By Hyatt provides to assist the franchisee in installing and implementing the necessary information technology systems. The franchisee is responsible for completing tasks outlined in Exhibit E in a timely manner. Caption By Hyatt will provide IT Project Management Services using its employees or third-party contractors. This article ensures that both the franchisee and Caption By Hyatt have clearly defined roles and responsibilities during the crucial development and opening phases of the hotel.