What is Hyatt's requirement for the Guarantor to sign the Guaranty in the Caption By Hyatt agreement?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must ensure that one or more of the Controlling Owners which Hyatt specifies as of the Effective Date signs Hyatt's Guaranty and Assumption of Obligations (the "Guaranty"), the current form of which is attached as Exhibit H.
Franchisee represents and warrants that at least one Guarantor satisfies the Guarantor Monetary Threshold as of the Effective Date, and Franchisee agrees to ensure that at least one Guarantor continues to satisfy the Guarantor Monetary Threshold (as it may be increased in accordance with Exhibit B-1) at all times during the Term.
Franchisee agrees to, and shall cause its Guarantors to, reasonably cooperate with Hyatt in connection with all auditing and reporting requirements that Hyatt reasonably specifies relating to the Guarantor Monetary Threshold.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, Hyatt requires that one or more of the Controlling Owners that Hyatt specifies as of the Effective Date signs Hyatt's Guaranty and Assumption of Obligations. The current form of the Guaranty is attached as Exhibit H to the Franchise Agreement.
The Franchisee must ensure that at least one Guarantor satisfies the Guarantor Monetary Threshold as of the Effective Date. The Franchisee must also ensure that at least one Guarantor continues to satisfy the Guarantor Monetary Threshold (as it may be increased in accordance with Exhibit B-1) at all times during the Term of the Franchise Agreement.
The Franchisee and its Guarantors must reasonably cooperate with Hyatt in connection with all auditing and reporting requirements that Hyatt reasonably specifies relating to the Guarantor Monetary Threshold. This ensures that the financial obligations are continuously met throughout the franchise term.