Must a Caption By Hyatt franchisee obtain approval for their relationship with any F&B Operator?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Hyatt and Franchisee acknowledge and agree that the scope of the IT Project Management Services may change between the Effective Date and the date that the IT Project Management Services are provided, as a result of modifications to the technology systems required under the Hotel System. If any such changes result in an increase to Hyatt's costs in providing the IT Project Management Services, Hyatt shall have the right to charge a reasonable additional fee in connection therewith.
2.3 F&B Operations and Spa Operations.
(a) F&B Operations Plan. At Hyatt's option, Franchisee must prepare and deliver to Hyatt for its approval the F&B Operations Plan describing Franchisee's proposal for conducting F&B Operations at the Hotel. Franchisee shall make such modifications to the F&B Operations Plan that Hyatt reasonably specifies and ensure that the Hotel and its
F&B Operations operate in accordance with the approved F&B Operations Plan. Franchisee may not make any material changes to the F&B Operations Plan (including any changes to the proposed restaurant concept(s) and/or F&B Operator(s)) without Hyatt's prior written approval. Before the Hotel begins operating in affiliation with the Proprietary Marks, Franchisee shall require each F&B Operator (if any) to sign such documents as Hyatt reasonably specifies to protect Hyatt's (and its Affiliates') intellectual property and other rights. At Hyatt's option, Franchisee must submit to Hyatt for its prior approval any proposed lease or other agreement between Franchisee (or its Affiliate or the Management Company) and the F&B Operator pursuant to which the F&B Operator will conduct F&B Operations, in which case Franchisee may not sign (or permit its Affiliate or the Management Company to sign) any such lease or other agreement that Hyatt has not approved.
- (b) Spa Operations. If the Hotel has Spa Operations, Franchisee may subcontract the management of the Spa Operations to a Spa Operator only if (i) Hyatt (in its sole judgment) approves of the Spa Operator, the spa concept and the terms of the lease or other arrangement between Franchisee and the Spa Operator; (ii) the Spa Operator complies with all applicable System Standards; and (iii) the spa does not use the Proprietary Marks in any manner (unless Hyatt authorizes such use in writing).
- 2.4 Pre-Opening Sales Office. Promptly after the Technology System is installed at the Hotel, at Hyatt's option, Franchisee must open and begin operating a Pre-Opening Sales Office at the Site, staffed by the Hotel's director of sales.
- 2.5 Opening the Hotel.
Source: Item 16 — Restrictions on What the Franchisee May Sell (FDD pages 74–75)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, if a franchisee intends to have an F&B Operator, they must adhere to specific approval processes. The franchisee must first prepare and submit an F&B Operations Plan to Hyatt for approval, detailing their proposal for conducting F&B Operations at the hotel. This plan needs to be modified according to Hyatt's specifications, and the hotel's F&B Operations must align with the approved plan. Material changes to the F&B Operations Plan, including changes to restaurant concepts or F&B Operators, require Hyatt's prior written approval.
Before the hotel begins operating under the Caption By Hyatt brand, the franchisee must ensure that each F&B Operator signs documents that Hyatt specifies to protect its intellectual property and other rights. Additionally, Hyatt has the option to require the franchisee to submit any proposed lease or agreement between the franchisee and the F&B Operator for prior approval. The franchisee cannot sign any such agreement without Hyatt's approval.
If the F&B Operator fails to comply with applicable laws, rules, regulations, System Standards, or any agreement with Hyatt, Hyatt can revoke its approval of the F&B Operator. Should this occur, the franchisee must terminate the arrangement with the F&B Operator and either assume direct control of the hotel's F&B Operations, if approved by Hyatt, or engage another F&B Operator that Hyatt has approved in writing. This ensures that all aspects of the Caption By Hyatt brand, including food and beverage services, meet the franchisor's standards and legal requirements.