Can a franchisee develop a Caption By Hyatt Hotel at a site that has not been approved by the franchisor?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Before you begin operating the Hotel, we or another member of the Hyatt Group will:
- (1) Approve a site for the Hotel that meets our requirements. We do not provide any site selection assistance or specify an area within which you may look for a site. We do not own hotel premises and lease them to franchisees. In determining whether to approve a site, we consider, among other things, demographic characteristics, traffic patterns, parking, visibility, allowed signage, the predominant character of the neighborhood, competition from other lodging facilities in the area, the nature of other businesses near the site, and other commercial characteristics (including the purchase price or rental obligations and other lease terms) and the proposed site's size, appearance, and other physical characteristics. You may not develop a Brand Hotel at a site that we do not approve. We and you will not sign a Franchise Agreement until you have located and we have approved the Hotel's site. If you are converting an existing hotel from another brand to the Hotel System, we will inspect the hotel and prepare a PIP to provide details on our upgrade requirements. Each Comfort Letter Party must sign a comfort letter or similar agreement that we reasonably specify. (Sections 2.1 and 2.7 of Franchise Agreement)
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 48–65)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, a franchisee cannot develop a Caption By Hyatt hotel at a site that has not been approved by Hyatt Franchising, L.L.C. The FDD states that Hyatt Franchising, L.L.C. will approve a site for the Hotel that meets their requirements.
In determining whether to approve a site, Caption By Hyatt considers factors such as demographic characteristics, traffic patterns, parking, visibility, allowed signage, the neighborhood's character, competition from other lodging facilities, the nature of nearby businesses, commercial characteristics (including purchase price or rental obligations and other lease terms), and the proposed site's size, appearance, and other physical characteristics.
The Franchise Agreement between Caption By Hyatt and the franchisee will not be signed until a suitable location has been found and approved by Caption By Hyatt. If an existing hotel is being converted from another brand to the Caption By Hyatt brand, Caption By Hyatt will inspect the hotel and prepare a Property Improvement Plan (PIP) detailing the upgrade requirements.