What is a Caption By Hyatt franchisee's obligation regarding Innovations developed for the hotel?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.7 Innovations. All Innovations must be promptly disclosed to Hyatt and will be deemed to be Hyatt's or its Affiliate's sole and exclusive property, part of the Hotel System, and works made-for-hire for Hyatt or its Affiliates. However, Franchisee may not use any Innovation in operating the Hotel or otherwise without Hyatt's prior written consent. If any Innovation does not qualify as a "work made-for-hire" for Hyatt or its Affiliate, by this paragraph Franchisee assigns ownership of that Innovation, and all related intellectual property rights and other rights to that Innovation, to Hyatt and agrees to take whatever action (including signing assignment or other documents) that Hyatt requests to evidence its ownership or to help Hyatt obtain intellectual property rights in the Innovation.
"Innovations" means all inventions, innovations and discoveries relating to a Brand Hotel and based or relying upon any element of the Hotel System, including any advertising, marketing, promotional or public relations plans, programs or materials that Franchisee or its contractors develop for the Hotel, whether or not protectable intellectual property and whether created by or for Franchisee, its Affiliates or contractors, or its or their employees.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, franchisees must promptly disclose all Innovations to Hyatt. The term "Innovations" includes all inventions, innovations, and discoveries related to a Brand Hotel that are based on any element of the Hotel System. This includes any advertising, marketing, promotional, or public relations plans, programs, or materials that the franchisee or its contractors develop for the hotel.
Hyatt considers these Innovations to be its sole and exclusive property, a part of the Hotel System, and works made-for-hire for Hyatt or its Affiliates. The franchisee is prohibited from using any Innovation in operating the hotel or otherwise without Hyatt's prior written consent.
If any Innovation does not legally qualify as a "work made-for-hire," the franchisee automatically assigns ownership of that Innovation, along with all related intellectual property rights, to Hyatt. The franchisee also agrees to take any action, such as signing assignment documents, that Hyatt requests to evidence its ownership or to help Hyatt obtain intellectual property rights in the Innovation. This means that any creative ideas or improvements a franchisee develops related to the Caption By Hyatt brand become the property of Hyatt, and the franchisee has no right to use them without permission.