What is the purpose of a Cooperative Advertising Program for Caption By Hyatt hotels?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
The Cooperative's purpose will be to collect funds from its members and to plan, discuss, organize, develop, utilize, produce, disseminate, and implement marketing, advertising and promotional programs and materials on a collective basis (and to cover related expenses) for participating Brand Hotels.
Hyatt will not require Franchisee to participate in a Cooperative.
However, if Franchisee chooses to participate in the Cooperative, Franchisee must do so according to the Cooperative's
rules, including paying the Hotel's allocable share of any advertising, marketing, promotional and other programs that the Cooperative conducts. All restrictions under this Agreement relating to any advertising, marketing or promotional programs that Franchisee conducts also apply to any such programs that the Cooperative conducts.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, a Cooperative Advertising Program is designed to allow multiple Caption By Hyatt hotels within a specific region to pool their resources for marketing and advertising purposes. Hyatt may identify a region with two or more Brand Hotels to establish a local or regional advertising cooperative.
The primary purpose of the Cooperative is to collect funds from its members in order to plan, discuss, organize, develop, utilize, produce, disseminate, and implement marketing, advertising, and promotional programs and materials on a collective basis for the participating Caption By Hyatt hotels. These funds also cover related expenses.
While Caption By Hyatt does not mandate participation in a Cooperative, franchisees who choose to participate must adhere to the Cooperative's rules. This includes paying the hotel's share of any advertising, marketing, promotional, and other programs conducted by the Cooperative. All restrictions under the Franchise Agreement relating to advertising, marketing, or promotional programs that the franchisee conducts also apply to any such programs that the Cooperative conducts.