When will a prospective Caption By Hyatt franchisee sign the Confidentiality Agreement?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
You will sign the Confidentiality Agreement while we and you are evaluating whether to start a franchise relationship. You must keep confidential all information concerning development plans for particular sites or markets and information concerning our plans, strategies, operations, processes, and System Standards, including any information in the PIP that we conduct or prepare for your hotel. These obligations continue even if we and you do not sign a Franchise Agreement. You must take reasonable measures to ensure that your employees, agents and advisors comply with these restrictions and are responsible if they fail to do so. You also must promise us that our and your discussions and, if applicable, your signing a Franchise Agreement do not violate any laws, breach any agreements or require any consents.
Source: Item 14 — Patents, Copyrights, and Proprietary Information (FDD pages 68–71)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, a prospective franchisee will sign the Confidentiality Agreement while the franchisee and Caption By Hyatt are evaluating whether to start a franchise relationship. This agreement ensures that all information concerning development plans, strategies, operations, processes, and System Standards remain confidential. This includes any information in the PIP (Property Improvement Plan) that Caption By Hyatt conducts or prepares for the hotel.
The obligations to maintain confidentiality continue even if the franchisee and Caption By Hyatt do not ultimately sign a Franchise Agreement. The franchisee must take reasonable measures to ensure that their employees, agents, and advisors also comply with these restrictions and are responsible if they fail to do so.
Furthermore, the franchisee must promise that their discussions with Caption By Hyatt and, if applicable, their signing of a Franchise Agreement do not violate any laws, breach any existing agreements, or require any consents from third parties. This ensures that the franchisee is entering the agreement legally and without conflicting obligations.