What representations are a Caption By Hyatt franchisee and its Affiliates prohibited from making to customers or the public after termination or expiration of the agreement?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
phone listing and immediately stop answering the telephone in any way that would lead a current or prospective customer, vendor, or other person to believe that the Hotel still is affiliated with the Brand Hotel network or with Hyatt;
- (e) stop all uses of the Proprietary Marks on any Franchisee Organization Website and require all third party websites to remove any references that directly or indirectly associate the Hotel with the Proprietary Marks;
- (f) cancel all fictitious, assumed, or other business name registrations relating to Franchisee's use of the Proprietary Marks; and
- (g) permit Hyatt's representatives to enter the Hotel on no less than twenty-four (24) hours' prior notice to conduct inspections on a periodic basis until de-identification is completed to Hyatt's satisfaction.
Beginning on the date upon which this Agreement terminates or expires and continuing until de-identification is completed to Hyatt's satisfaction, Franchisee must maintain a conspicuous sign at the registration desk in a form that Hyatt specifies stating that the Hotel no longer is associated with the Brand Hotel network. Franchisee and its Affiliates may not, without Hyatt's permission, represent to Hotel customers, prospective customers or the public that the Hotel is or was a Brand Hotel, or otherwise hold itself out to the public as a former franchisee of Hyatt's or as the former operator of a Brand Hotel, except in the limited case of informing investors, prospective investors, or
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, after the franchise agreement terminates or expires, a franchisee and its affiliates are restricted from representing to customers, potential customers, or the public that the hotel is or was a Caption By Hyatt hotel without permission from Hyatt. The only exception to this is when informing investors, prospective investors, or lenders that the franchisee has general experience in operating a Caption By Hyatt hotel.
This restriction is designed to protect the Caption By Hyatt brand and prevent customer confusion. To further ensure there is no confusion, the franchisee must maintain a conspicuous sign at the registration desk stating that the hotel is no longer associated with the Caption By Hyatt brand, until Hyatt confirms de-identification is complete.
The franchisee is obligated to complete all de-identification requirements to Hyatt's satisfaction within fifteen days after the agreement terminates or expires, and provide written certification of completion. Failure to comply with these de-identification provisions results in a penalty of $5,000 per day until de-identification is completed, and also allows Hyatt's representatives to enter the hotel to complete the process at the franchisee's expense.