After a Caption By Hyatt franchise transfer, what are the transferring owners prohibited from using?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
- (h) Franchisee (if Franchisee will no longer operate the Hotel) and its transferring Owners agree that they will not directly or indirectly at any time or in any manner use any Proprietary Mark, Copyrighted Materials or Confidential Information, except as otherwise permitted under any then effective agreement with Hyatt or its Affiliate.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, after a franchise transfer, transferring owners are prohibited from using any Proprietary Mark, Copyrighted Materials, or Confidential Information related to the Caption By Hyatt brand. This restriction applies unless there's an agreement in effect with Hyatt or its affiliates that permits such use.
This provision ensures that the outgoing franchisee and their owners do not leverage the brand's assets and trade secrets after they've relinquished control of the franchise. Proprietary Marks are the brand's trademarks and service marks, Copyrighted Materials include marketing materials and architectural plans, and Confidential Information refers to non-public operational and business data.
The restriction is in place to protect the integrity and exclusivity of the Caption By Hyatt brand. It prevents former franchisees from potentially confusing customers or competing unfairly by using the brand's identity or internal knowledge without authorization. This is a standard practice in franchising to maintain brand consistency and protect the franchisor's intellectual property.
Prospective franchisees should understand that upon transferring their franchise, they and their owners will lose all rights to use Caption By Hyatt's branding, materials, and confidential information. Any continued use could result in legal action from Hyatt.