How is a Caption By Hyatt franchisee allowed to use the Copyrighted Materials?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
You must follow our rules when using the Copyrighted Materials. You may use the Copyrighted Materials only as we specify to operate the Hotel under the Franchise Agreement.
You must notify us immediately of any apparent infringement or challenge to your use of any Copyrighted Materials or Confidential Information, or of any person's claim of any rights in any Copyrighted Materials or Confidential Information, and not communicate with any person other than us, our affiliates, and our and their attorneys, and your attorneys, regarding any infringement, challenge, or claim. We and our affiliates may take the action we and they deem appropriate (including no action) and control exclusively any litigation or administrative proceeding arising from any infringement, challenge, or claim or otherwise concerning any Copyrighted Materials or Confidential Information. You must sign any documents and take any other reasonable actions that, in the opinion of our and our affiliates' attorneys, are necessary or advisable to protect and maintain our and our affiliates' interests in any litigation or other proceeding or otherwise to protect and maintain our and our affiliates' interests in the Copyrighted Materials and Confidential Information. We will reimburse your reasonable out-of-pocket costs for taking any requested action. We need not participate in your defense nor indemnify you for damages and expenses you incur if you are a party to any administrative or judicial proceeding involving any Copyrighted Materials or if the proceeding is resolved unfavorably to you.
If it becomes advisable at any time in our sole judgment for you to modify or discontinue using any of the Copyrighted Materials and/or for you to use one or more additional or substitute copyrighted or copyrightable items, you must immediately comply with our directions.
Source: Item 14 — Patents, Copyrights, and Proprietary Information (FDD pages 68–71)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, the use of copyrighted materials is explicitly controlled by the franchisor. As a franchisee, you are permitted to use these materials only as specified by Caption By Hyatt to operate the hotel under the Franchise Agreement. This means that the ways in which you can utilize logos, marketing materials, and other proprietary content are dictated by the franchisor, ensuring brand consistency across all locations.
This arrangement is typical in franchising, where maintaining a uniform brand image is crucial. However, it also means that as a Caption By Hyatt franchisee, you have limited autonomy in creating your own marketing campaigns or modifying existing materials without prior approval. It is important to understand the scope of permitted uses and any restrictions on altering or creating derivative works based on the copyrighted materials.
Furthermore, the FDD emphasizes the franchisee's responsibility to report any potential infringement or challenges to the use of copyrighted materials. If any third party claims rights to or infringes upon Caption By Hyatt's copyrighted materials, the franchisee must immediately notify Caption By Hyatt and cooperate in any legal proceedings. Caption By Hyatt retains exclusive control over any litigation related to these materials, and while the franchisee will be reimbursed for reasonable out-of-pocket costs for assisting in such actions, Caption By Hyatt is not obligated to defend or indemnify the franchisee if they become a party to any adverse legal proceeding involving the copyrighted materials.
Finally, Caption By Hyatt reserves the right to direct franchisees to modify or discontinue the use of any copyrighted materials, and to adopt additional or substitute copyrighted items. Compliance with these directives is mandatory, ensuring that the brand can adapt to changing market conditions or legal requirements. This underscores the importance of staying aligned with the franchisor's instructions regarding the use of intellectual property to avoid potential breaches of the Franchise Agreement.