If a Caption By Hyatt franchisee chooses to participate in a Cooperative, what obligations does the franchisee have?
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, participation in a Cooperative is not required. However, if a franchisee chooses to participate, they must adhere to the Cooperative's rules. This includes paying the hotel's allocated share of expenses for advertising, marketing, promotional programs, and other activities conducted by the Cooperative.
All restrictions outlined in the franchise agreement regarding advertising, marketing, or promotional programs also apply to any programs the Cooperative undertakes. This ensures consistency and compliance with Caption By Hyatt's brand standards across all marketing efforts, whether managed individually by the franchisee or collectively through the Cooperative.
Cooperatives are formed by Caption By Hyatt in regions with two or more brand hotels to collectively plan, organize, and implement marketing and advertising programs. Caption By Hyatt retains the right to form, change, dissolve, and merge these Cooperatives as it sees fit. This structure allows for regional marketing strategies tailored to specific markets while maintaining brand uniformity and standards.