Is a Caption By Hyatt franchisee reimbursed for costs associated with protecting the Proprietary Marks?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
aph apply to any of the Proprietary Marks (and any portion of any Proprietary Mark) that we authorize you to use.
We will reimburse you for all damages and expenses that you incur in any trademark infringement proceeding disputing your authorized use of any Proprietary Mark if you have timely notified us of, and comply with our directions in responding to, the proceeding. We will defend you in the proceeding and, at our option, we and/or our affiliate(s) may defend and control the defense of any proceeding arising from your use of any Proprietary Mark.
Item 14
PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION
No patents or pending patent applications are material to the franchise. We and our affiliates claim copyright protection for the Copyrighted Materials. We have not registered these
Copyrighted Materials with the United States Copyright Office but need not do so at this time in order to protect them. You must follow our rules when using the Copyrighted Materials. You may use the Copyrighted Materials only as we specify to operate the Hotel under the Franchise Agreement.
You must notify us immediately of any apparent infringement or challenge to your use of any Copyrighted Materials or Confidential Information, or of any person's claim of any rights in any Copyrighted Materials or Confidential Information, and not communicate with any person other than us, our affiliates, and our and their attorneys, and your attorneys, regarding any infringement, challenge, or claim.
Source: Item 13 — Trademarks (FDD pages 67–68)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, Caption By Hyatt will cover certain costs related to protecting its Proprietary Marks. Specifically, if a franchisee is involved in a trademark infringement proceeding due to their authorized use of a Proprietary Mark, Caption By Hyatt will reimburse all damages and expenses the franchisee incurs. This reimbursement is contingent on the franchisee having promptly notified Caption By Hyatt of the proceeding and complying with their directions in responding to it. Caption By Hyatt also commits to defending the franchisee in such proceedings and may choose to control the defense themselves or through their affiliates.
However, this reimbursement policy has limitations. Caption By Hyatt will not reimburse a franchisee for costs or expenses incurred if it becomes necessary to modify, discontinue, or replace any Proprietary Mark. This includes expenses related to changing the hotel's signage, any loss of revenue resulting from the change, or the costs of promoting a modified or substitute trademark.
In situations where a franchisee is asked to take action to protect and maintain Caption By Hyatt's interests in any litigation or PTO proceeding related to the Proprietary Marks, Caption By Hyatt will reimburse the franchisee's reasonable out-of-pocket costs for taking the requested action. This suggests that while Caption By Hyatt is willing to bear the brunt of legal costs associated with trademark protection, franchisees must still be proactive in reporting potential infringements and following Caption By Hyatt's instructions to be eligible for reimbursement.