Can Hyatt modify the System Services offered to Caption By Hyatt franchisees?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Mandatory Services and Non Mandatory Services comprise the System Services. If you are in full compliance with your obligations under the Franchise Agreement, we or one or more members of the Hyatt Group will provide you those System Services that we periodically specify. You must participate in all Mandatory Services and related programs and may (at your option) participate in any or all Non-Mandatory Services and related programs, in the manner that we periodically specify. You must acquire all Mandatory Services (as we periodically modify them) only from a member of the Hyatt Group. We may periodically add to, delete from, and otherwise modify these System Services, and the scope of and manner of providing System Services, upon notice to you. Also, due to the differences in products, services, markets and hospitality experiences among Brand Hotels and other Hyatt Network Hotels, we may, where we deem appropriate in our judgment: (a) classify certain System Services as Mandatory Services for the Hotel which we classify as Non-Mandatory Services or do not offer to other Brand Hotels and/or other Hyatt Network Hotels; (b) not provide to the Hotel certain System Services that we provide to other Brand Hotels and/or other Hyatt Network Hotels; and (c) limit the scope of those System Services provided to franchised Brand Hotels, such as by limiting the access that franchised Brand Hotels have to certain customer and other proprietary information for Hyatt Network Hotels other than the Hotel. We describe the current System Services and the current charges for those System Services in Item 6, including all of the services offered pursuant to the Central Services Agreement, which are generally Non-Mandatory Services but in certain circumstances may be designated as Mandatory Services as a condition of our approval of the Hotel's management company, as consideration for other items negotiated as part of the Franchise Agreement, or as part of the requirements of the Quality Assurance and Compliance Program.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 40–45)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, Hyatt has the right to modify the System Services offered to franchisees. System Services are comprised of Mandatory Services and Non-Mandatory Services. Hyatt may periodically add to, delete from, and otherwise modify these System Services, including the scope and manner of providing them, upon notice to the franchisee.
Hyatt may also classify certain System Services differently for different Brand Hotels. This means that a service classified as Mandatory for one Caption By Hyatt location might be Non-Mandatory or not offered at all to another. Similarly, Hyatt can limit the scope of System Services provided to franchised Brand Hotels, such as restricting access to certain customer or proprietary information that is available to other Hyatt Network Hotels.
Franchisees are required to participate in all Mandatory Services and related programs as specified by Hyatt and must acquire these services exclusively from a member of the Hyatt Group. The current System Services and their associated charges are detailed in Item 6 of the FDD, including services offered under the Central Services Agreement, which are generally Non-Mandatory but can become Mandatory under certain conditions, such as approval of the Hotel's management company or as part of the Quality Assurance and Compliance Program. This flexibility allows Hyatt to tailor its support and requirements based on the specific needs and circumstances of individual Caption By Hyatt locations, while maintaining overall brand standards and operational efficiency.