If Caption By Hyatt revokes approval of the management company, what must the franchisee do?

According to Caption By Hyatt's 2025 Franchise Disclosure Document, if Caption By Hyatt revokes approval of the management company, the franchisee must promptly terminate the Management Arrangement. Following termination, the franchisee has two options: assume direct control of the Hotel's management and operation, if Caption By Hyatt approves the franchisee to manage the Hotel, or engage another management company that Caption By Hyatt approves.

This stipulation ensures that the Caption By Hyatt brand maintains its standards and operational control, even if the initial management arrangement falters. The franchisee bears the responsibility of ensuring continuous, approved management, highlighting the importance of selecting a capable and compliant management company initially or being prepared to step in and manage the hotel directly if approved by Caption By Hyatt.

The requirement for Caption By Hyatt's approval in either management scenario underscores the franchisor's vested interest in upholding brand standards and operational consistency across all franchise locations. This condition protects the Caption By Hyatt brand and ensures that all management entities adhere to the franchise agreement and system standards. Franchisees should carefully consider these requirements when selecting a management company and understand the implications of a potential management change.