Can the Franchisee manage the Caption By Hyatt Hotel without Hyatt's approval?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
vices under this Agreement which Hyatt classifies as Non-Mandatory Services or does not offer to other Brand Hotels and/or other Hyatt Network Hotels; (b) not provide to the Hotel certain System Services that Hyatt provides to other Brand Hotels and/or other Hyatt Network Hotels; and (c) limit the scope of those System Services provided to franchised Brand Hotels, including, by way of example and without limitation, by limiting the access that franchised Brand Hotels have to certain customer and other proprietary information for Hyatt Network Hotels other than the Hotel.
4.2 Management of the Hotel.
- (a) Franchisee or Management Company as Manager. Either a Management Company that Hyatt approves in writing or Franchisee (if Hyatt approves Franchisee to manage the Hotel) must at all times retain and exercise direct management control over all aspects of the Hotel's business and must be the employer of the Hotel's Core Management and other personnel, except for any members of Core Management that are overseen by an F&B Operator whom Hyatt approves. At Hyatt's option, before any of the Hotel's Core Management are engaged, Franchisee must submit to Hyatt the identity and qualifications of the proposed candidates. These personnel must be in place and working on behalf of the Hotel by the time period Hyatt specifies. Franchisee may not enter into a Management Arrangement without Hyatt's prior written approval of the Management Company, and Franchisee may not itself manage the Hotel without Hyatt's approval of Franchisee as the Hotel's operator.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, a franchisee needs Hyatt's approval to manage the Hotel. Specifically, either a management company approved by Hyatt or the franchisee themselves (if approved by Hyatt) must retain direct management control over all aspects of the hotel's business.
The FDD states that the franchisee cannot manage the hotel without Hyatt's approval. Hyatt will not unreasonably withhold approval if the franchisee meets Hyatt's minimum qualifications, including paying the operator approval fee, and ensures their personnel complete the required brand standard training programs.
If Hyatt revokes its approval of the Management Company or of Franchisee as manager, then Franchisee must promptly terminate the Management Arrangement with that Management Company (if applicable) and either assume direct control of the Hotel's management and operation, if Hyatt approves Franchisee to manage the Hotel, or engage another Management Company that Hyatt has approved in writing.