Does Caption By Hyatt know of any infringement of the Copyrighted Materials that could materially affect a franchisee?

According to Caption By Hyatt's 2025 Franchise Disclosure Document, Caption By Hyatt states that it does not know of any existing copyright infringements that could have a material impact on its franchisees. Additionally, Caption By Hyatt asserts that there are no significant agreements that would limit their ability to use or license the Copyrighted Materials. This suggests that Caption By Hyatt believes its trademarks and copyrighted materials are secure and that franchisees should be able to use them without legal issues.

However, the FDD also stipulates that franchisees must immediately notify Caption By Hyatt of any potential infringement or challenges to the use of Copyrighted Materials or Confidential Information. The franchisee is not allowed to communicate with anyone other than Caption By Hyatt, its affiliates, their attorneys, and the franchisee's own attorneys regarding any infringement, challenge, or claim. Caption By Hyatt retains exclusive control over any litigation or administrative proceedings related to such matters and may take any action it deems appropriate, including no action.

Furthermore, franchisees are obligated to sign documents and take reasonable actions deemed necessary by Caption By Hyatt's attorneys to protect the interests of Caption By Hyatt and its affiliates in any legal proceedings or concerning the Copyrighted Materials and Confidential Information. While Caption By Hyatt will reimburse reasonable out-of-pocket costs for these actions, it is not obligated to participate in the franchisee's defense or indemnify them for damages and expenses if the franchisee is involved in any administrative or judicial proceeding related to the Copyrighted Materials and the proceeding is resolved unfavorably to the franchisee. This means that while Caption By Hyatt takes the lead in protecting its intellectual property, franchisees may still bear some financial risk in the event of legal challenges.

In the event that Caption By Hyatt deems it advisable for a franchisee to modify or discontinue using any of the Copyrighted Materials, or to use substitute items, the franchisee must immediately comply with Caption By Hyatt's directions. This clause highlights the franchisor's control over the brand's intellectual property and the franchisee's obligation to adhere to any changes Caption By Hyatt makes to protect its brand and trademarks.