For a Caption By Hyatt franchise, what is the meaning of the term "AOP Term"?

According to Caption By Hyatt's 2025 Franchise Disclosure Document, the "AOP Term" is referenced in Exhibit B-2 of the Brand Hotel Franchise Agreement. The FDD specifies that during the AOP Term, Caption By Hyatt provides the franchisee with certain rights within their Area of Protection. Specifically, Caption By Hyatt agrees not to open or authorize other parties to open other Brand Hotels within the franchisee's Area of Protection during the AOP Term. However, this protection is subject to an exception: if Caption By Hyatt acquires a group of at least four hotels, even if some are located within the Area of Protection, Caption By Hyatt can convert those acquired hotels to Brand Hotels.

Following the AOP Term, the franchisee loses all territorial rights or protection, allowing Caption By Hyatt and its affiliates to operate or authorize others to operate Brand Hotels within the former Area of Protection. This implies that the AOP Term represents a limited period of territorial exclusivity for the franchisee.

Prospective franchisees should carefully review Exhibit B-2 to fully understand the duration and specific conditions of the AOP Term, as well as the Area of Protection. Understanding these terms is crucial for assessing the potential for competition from other Caption By Hyatt locations and for evaluating the long-term value of the franchise.