For projects other than mixed-use, when is construction of the Caption By Hyatt hotel deemed to have begun?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall design, build, equip, furnish and decorate the Hotel having the Hotel Elements. Construction must begin within twelve (12) months after the Effective Date. For purposes of this Agreement, construction of the Hotel is deemed to have begun when the vertical construction or adaptation of the Hotel portion of the building begins for mixed use projects or upon pouring concrete for the Hotel's foundation or finished slab for all other projects.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, construction of the hotel is considered to have started when concrete is poured for the hotel's foundation or finished slab for projects that are not mixed-use. Franchisees must begin construction within twelve months of the effective date of the franchise agreement.
This definition is important because it sets a clear starting point for the construction timeline. Meeting this deadline is crucial for franchisees to avoid potential penalties or termination of the agreement. The distinction between mixed-use projects and others is also significant, as it acknowledges the different construction processes involved.
Prospective Caption By Hyatt franchisees should carefully note the effective date of their franchise agreement and ensure that concrete pouring commences within the stipulated timeframe to remain compliant with the franchise terms. This requirement helps ensure timely development and opening of the hotel, aligning with Caption By Hyatt's brand standards and operational expectations.