If a Caption By Hyatt franchisee chooses to participate in a Cooperative, what are they obligated to do?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Hyatt will not require Franchisee to participate in a Cooperative.
However, if Franchisee chooses to participate in the Cooperative, Franchisee must do so according to the Cooperative's
rules, including paying the Hotel's allocable share of any advertising, marketing, promotional and other programs that the Cooperative conducts. All restrictions under this Agreement relating to any advertising, marketing or promotional programs that Franchisee conducts also apply to any such programs that the Cooperative conducts.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, Hyatt may establish a local or regional advertising cooperative comprised of two or more Brand Hotels. While participation in a Cooperative is not required, a franchisee who elects to participate must adhere to the Cooperative's rules.
Specifically, the Caption By Hyatt franchisee is obligated to pay the Hotel's allocable share of any advertising, marketing, promotional, and other programs that the Cooperative undertakes. This financial obligation ensures that the franchisee contributes to the collective marketing efforts of the Cooperative, which are designed to benefit all participating Brand Hotels in the region.
Furthermore, any restrictions outlined in the Franchise Agreement regarding advertising, marketing, or promotional programs also apply to the Cooperative's activities. This ensures consistency and compliance with Caption By Hyatt's System Standards across all marketing initiatives, whether conducted individually by the franchisee or collectively through the Cooperative. This alignment helps maintain brand integrity and prevents conflicting marketing messages.