Does the Franchisee need Hyatt's approval to manage the Caption By Hyatt Hotel themselves?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the 2025 Caption By Hyatt Franchise Disclosure Document, if a franchisee wishes to manage the Caption By Hyatt hotel themselves rather than using a management company, they must obtain Hyatt's approval. Hyatt will assess the franchisee's qualifications to ensure they meet the brand's minimum standards. This approval process is in place to maintain consistent brand standards and quality across all Caption By Hyatt locations.
Hyatt states that it will not unreasonably withhold approval if the franchisee meets the minimum qualifications, including paying Hyatt's operator approval fee and ensuring personnel complete the required brand standard training programs. If Hyatt approves the franchisee to manage the hotel as of the effective date of the franchise agreement, this will be listed on Exhibit B-1.
However, Hyatt retains the right to revoke its approval if the franchisee becomes a Competing Brand Owner, fails to complete mandatory training, fails to meet Hyatt's minimum qualifications, or fails to comply with the franchise agreement. If Hyatt revokes its approval, the franchisee must either assume direct control of the hotel's management and operation, if Hyatt approves the franchisee to manage the Hotel, or engage another Management Company that Hyatt has approved in writing.