If a Caption By Hyatt franchisee chooses to participate in a Cooperative, what are the requirements?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
We will not require you to participate in a Cooperative. However, if you choose to participate in the Cooperative, you must do so according to the Cooperative's rules, including by paying your Hotel's allocable share for any advertising, marketing, promotional and other
programs that the Cooperative conducts. The Cooperative will be in charge of its own administration and determines contributions. Cooperative members will typically contribute to programs at the same rate. We anticipate that Cooperatives will operate from written governing documents and prepare financial statements that member franchisees may review. All restrictions relating to any advertising, marketing or promotional materials and programs that you use or conduct also apply to any materials and programs that the Cooperative will use or conduct. (Section 5.5 of Franchise Agreement).
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 48–65)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, franchisees are not required to participate in a Cooperative. However, if a franchisee chooses to participate, they must adhere to the Cooperative's rules. This includes paying the Hotel's allocable share for advertising, marketing, promotional programs, and other expenses conducted by the Cooperative.
The Cooperative is responsible for its own administration and determines the contribution amounts required from its members. Typically, all members of the Cooperative contribute to programs at the same rate. Caption By Hyatt anticipates that Cooperatives will operate using written governing documents and will prepare financial statements for review by the member franchisees.
All restrictions that apply to a franchisee's own advertising, marketing, and promotional materials also apply to the materials and programs used or conducted by the Cooperative. This ensures consistency and compliance with Caption By Hyatt's standards across all advertising efforts, whether individual or collective. Therefore, franchisees should carefully consider the Cooperative's rules and financial obligations before deciding to participate, ensuring they align with their business goals and marketing strategies.