What is the Caption By Hyatt franchisee's obligation upon noticing an infringement of Proprietary Marks?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees to notify Hyatt immediately of any apparent infringement or challenge to Franchisee's use of any Proprietary Mark, Copyrighted Materials, or Confidential Information, or of any person's claim of any rights in any Proprietary Mark, Copyrighted Materials, or Confidential Information, and not to communicate with any person other than Hyatt, its Affiliates, and its and their attorneys, and Franchisee's attorneys, regarding any infringement, challenge, or claim.
Hyatt and its Affiliates may take the action it and they deem appropriate (including no action) and control exclusively any Proceeding arising from any infringement, challenge, or claim or otherwise concerning any Proprietary Mark, Copyrighted Materials, or Confidential Information.
Franchisee agrees to sign any documents and take any other reasonable actions that, in the opinion of Hyatt's and its Affiliates' attorneys, are necessary or advisable to protect and maintain Hyatt's and its Affiliates' interests in any Proceeding or otherwise to protect and maintain Hyatt's and its Affiliates' interests in the Proprietary Marks, Copyrighted Materials, and Confidential Information.
Hyatt or its Affiliate will reimburse Franchisee's reasonable out-of-pocket costs for taking any requested action.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, franchisees are required to notify Hyatt immediately if they become aware of any potential infringement or challenges to their use of Proprietary Marks, Copyrighted Materials, or Confidential Information. This also applies to any claims made by others regarding rights to these items. The franchisee is instructed to communicate only with Hyatt, its affiliates, their attorneys, and the franchisee's own attorneys regarding the infringement, challenge, or claim.
Caption By Hyatt retains exclusive control over any legal proceedings arising from such infringements, challenges, or claims, including the option to take no action at all. The franchisee is obligated to sign documents and take reasonable actions deemed necessary by Hyatt's attorneys to protect Hyatt's interests in these matters.
Caption By Hyatt will cover the franchisee's reasonable out-of-pocket expenses for any requested actions taken to address the infringement. This ensures that the franchisee is not financially burdened for assisting in the protection of Caption By Hyatt's intellectual property. This is a fairly standard clause in franchise agreements, as the franchisor is responsible for protecting its trademarks and brand identity.