What happens if a substantial portion of a Caption By Hyatt hotel is condemned?

According to Caption By Hyatt's 2025 Franchise Disclosure Document, if all or a substantial portion of the hotel is condemned or suffers a casualty that requires closure of all or a portion of the hotel, the franchisee has the option to relocate the hotel to a site approved by Caption By Hyatt. This provides a degree of flexibility for the franchisee in the event of unforeseen circumstances that render the original location unusable.

This clause protects the franchisee's investment to some extent, as it allows them to continue operating the business in a new location rather than losing the entire investment. However, the relocation is contingent upon Caption By Hyatt's approval of the new site, which means the franchisee does not have complete autonomy in choosing the new location. This approval process likely ensures that the new location meets Caption By Hyatt's standards and market considerations.

In the event of such a disruptive event, the franchisee would need to work closely with Caption By Hyatt to identify and secure a suitable new location. This process would likely involve additional costs for site selection, construction, and relocation, which the franchisee would need to factor into their financial planning. While the FDD specifies the possibility of relocation, it does not detail who bears the costs associated with it. A prospective franchisee should seek clarification from Caption By Hyatt regarding financial responsibilities in such a scenario.