Is a Caption By Hyatt franchisee allowed to use the Proprietary Marks in the spa?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee (and, if applicable, any restaurant operators at the Hotel) may use the Proprietary Marks in connection with any Hotel restaurant operations only with Hyatt's prior written consent and in compliance with all System Standards relating thereto.
If Hyatt discovers Franchisee's unauthorized use of the Proprietary Marks, in addition to Hyatt's other rights and remedies under this Agreement and applicable law, Hyatt may require Franchisee to destroy (with no reimbursement from Hyatt) all offending items reflecting such unauthorized use.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, a franchisee's ability to use the Proprietary Marks in spa operations is contingent upon specific conditions. The FDD states that franchisees may use the Proprietary Marks in connection with hotel restaurant operations only with Hyatt's prior written consent and in compliance with all System Standards relating thereto. This indicates that any use of the Proprietary Marks in a spa would similarly require Hyatt's explicit prior written consent and adherence to all relevant System Standards.
This requirement means that a Caption By Hyatt franchisee cannot assume automatic approval to use the brand's trademarks in a spa setting. They must proactively seek and obtain written permission from Hyatt before incorporating the Proprietary Marks into any aspect of the spa's operations, marketing, or branding. This condition protects the brand's image and ensures consistent application of the trademarks across all franchised locations.
The franchisor retains control over how its Proprietary Marks are used, ensuring brand consistency and quality control. If a franchisee uses the Proprietary Marks without authorization, Caption By Hyatt has the right to demand that the franchisee destroy all items displaying the unauthorized use, without any reimbursement from Caption By Hyatt. This underscores the importance of obtaining explicit written consent before using the Proprietary Marks in any capacity, including spa operations, to avoid potential penalties and maintain compliance with the franchise agreement.