For what purpose is the Caption By Hyatt Owner allowed to use the Hosted System and Services?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
- c.
Restrictions.
Owner may only use the Hosted System and Services for Owner's business at the Property.
Owner will not make any representations or warranties on behalf of Hyatt that are inconsistent with the terms of this Agreement.
Owner's failure to use the Property Management System, Third Party Software, Hosted Hardware, Hosted System, or Services shall not relieve Owner of any of its obligations hereunder, including without limitation payment obligations.
Owner may not loan, rent, lease, resell, transfer, convey, assign or license the Services to any other party or sell information services to other parties through the use of the Property Management System, Hosted Systems or Service, whether in the form of a service bureau, reservation center, or other information processing entity.
Source: Item 23 — Receipts (FDD pages 85–349)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, the Hosted System and Services are to be used solely for the Owner's business at the specific Caption By Hyatt property. This means the franchisee's usage of these systems is restricted to managing and operating their own Caption By Hyatt hotel.
This restriction prevents franchisees from extending the use of these services beyond their own hotel operations. Specifically, the agreement prohibits Caption By Hyatt Owners from using the system to provide services to other businesses, such as acting as a service bureau or reservation center for other hotels or entities. The Owner is also prohibited from selling information services to other parties through the use of the Property Management System, Hosted Systems or Service.
This limitation ensures that the resources and capabilities provided by Caption By Hyatt are focused on supporting the individual franchisee's business. It also protects Caption By Hyatt from potential misuse or unauthorized commercialization of its systems and services by franchisees. This is a fairly standard practice in franchising, as franchisors typically want to maintain control over their systems and ensure consistent brand standards across all locations.