Is a Caption By Hyatt franchisee required to participate in a Cooperative advertising program?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Hyatt will not require Franchisee to participate in a Cooperative.
However, if Franchisee chooses to participate in the Cooperative, Franchisee must do so according to the Cooperative's
rules, including paying the Hotel's allocable share of any advertising, marketing, promotional and other programs that the Cooperative conducts. All restrictions under this Agreement relating to any advertising, marketing or promotional programs that Franchisee conducts also apply to any such programs that the Cooperative conducts.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, franchisees are not required to participate in a Cooperative advertising program. However, Caption By Hyatt may identify a region with two or more Brand Hotels to establish a local or regional advertising cooperative. These cooperatives collect funds from members to plan and implement marketing and promotional programs for participating hotels.
While participation is optional, if a Caption By Hyatt franchisee chooses to join a Cooperative, they must adhere to its rules. This includes paying their allocable share of advertising, marketing, and promotional programs the Cooperative undertakes. All restrictions under the franchise agreement relating to advertising and marketing programs also apply to any programs the Cooperative conducts.
This setup allows Caption By Hyatt to facilitate collaborative advertising efforts among franchisees in specific regions, potentially increasing brand awareness and marketing impact. However, the decision to participate and contribute financially remains at the franchisee's discretion.