If Caption By Hyatt revokes approval of the F&B Operator, what must the franchisee do?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
You must ensure that all F&B Operations operate in full compliance with all applicable laws, rules and regulations and all applicable System Standards. You must provide, or cause the management company to provide, all brand standard training programs to the F&B Operator that we periodically specify. If the F&B Operator at any time fails to operate in full compliance with all applicable laws, rules and regulations and all applicable System Standards, or fails to comply with any agreement with us, then, without limiting our other rights and remedies under the Franchise Agreement and applicable law, we may revoke our approval of the F&B Operator. You then must promptly terminate your arrangement with the F&B Operator and either assume (if we approve you to manage the Hotel) or have your approved management company assume direct control of the Hotel's F&B Operations or engage another approved F&B Operator we approve.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 71–74)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, if the F&B Operator fails to comply with applicable laws, rules, regulations, System Standards, or any agreement with Caption By Hyatt, the brand may revoke its approval of the F&B Operator. In this event, the franchisee must promptly terminate their arrangement with the F&B Operator.
Following the termination, the franchisee has two options. If Caption By Hyatt approves the franchisee to manage the hotel, the franchisee can assume direct control of the Hotel's F&B Operations. Alternatively, the franchisee can have their approved management company assume direct control or engage another F&B Operator that Caption By Hyatt approves.
This requirement ensures that all Caption By Hyatt locations maintain brand standards and comply with regulations, even in the event of an underperforming or non-compliant F&B Operator. It also highlights the importance of having contingency plans and approved management options in place to ensure continuity of operations.