What must a Caption By Hyatt franchisee do before opening the Hotel in affiliation with the Proprietary Marks?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
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. Franchisee may not open or begin operating the Hotel in affiliation with the Proprietary Marks until Hyatt has notified Franchisee in writing that Franchisee has satisfied all of the pre-opening conditions set forth in the System Standards or otherwise in writing. Franchisee must open and begin operating the Hotel under the Hotel System and in affiliation with the Proprietary Marks on or before the Opening Deadline. Franchisee may request an extension of the Opening Deadline by submitting to Hyatt, at least three (3) months before the Opening Deadline, a written request for extension and an extension fee in the amount set forth in Exhibit B-1. If Hyatt approves the extension, Hyatt will set a new Opening Deadline, the extension fee will be non-refundable, and Hyatt may (at its option) require Franchisee to modify any previously-approved plans, construction documents, or the PIP (as applicable), to comply with the then current design, equipment and other aspects of the Hotel System. If Hyatt denies the extension, Hyatt will refund the extension fee.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, a franchisee cannot open or begin operating their hotel in affiliation with Caption By Hyatt's Proprietary Marks until Caption By Hyatt provides written notification that all pre-opening conditions outlined in the System Standards or other written communication have been met.
Caption By Hyatt agrees to exert commercially reasonable efforts in reviewing and approving plans, as well as granting approval to open the hotel under its brand. This includes conducting a reasonable number of site visits and offering appropriate guidance during the hotel's development or conversion phase. The purpose of Caption By Hyatt's plan review and approvals is solely to ensure compliance with pre-opening requirements, and it does not represent a warranty that the hotel adheres to all laws or is safe for occupancy.
Furthermore, at Caption By Hyatt's discretion, the franchisee must open and operate a Pre-Opening Sales Office at the site promptly after the Technology System is installed, staffed by the hotel's director of sales. Additionally, at least 120 days before the hotel's opening date, the franchisee must prepare and submit a written pre-opening marketing program to Caption By Hyatt for approval, which must meet Caption By Hyatt's requirements and involve spending at least the amount specified in Exhibit B-1.