What responsibilities does the Caption By Hyatt franchisee have regarding IT Project Management Services, as detailed in Exhibit E?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
the Hotel in accordance with the System Standards. To assist Franchisee and Franchisee's consultants in installing and implementing information technology system(s) that meet Hyatt's requirements and in consideration of the IT Project Management Services Fee, Hyatt will provide the IT Project Management Services in connection with the opening of the Hotel in accordance with this Section 2.2. Hyatt will staff the IT Project Management Services using its employees or third party contractors, as Hyatt determines.
- (b) Franchisee Responsibilities. Franchisee agrees to perform, in a timely manner, the tasks identified as Franchisee's responsibilities in Exhibit E. Franchisee acknowledges that Hyatt's performance of the IT Project Management Services is dependent on Franchisee's timely, accurate, and effective performance of all Franchisee's responsibilities set forth in Exhibit E, including providing written notice to Hyatt of Franchisee's designated representative. Franchisee further acknowledges and agrees that its failure to perform may prevent or delay Hyatt's performance of the IT Project Management Services and/or require modifications to the services performed, including an adjustment to the scope of work, completion schedule or fees.
- (c) Site Preparation. Franchisee will be responsible for all site preparation at the Hotel in connection with the IT Project Management Services. Without limitation, Franchisee is responsible for all climate control, physical safety and security, provision of adequate electric and telecommunications utilities, and wiring for all equipment and devices. Franchisee will also provide such workspace, supplies, hardware and software as are reasonably required for each assignment.
- (d) Hyatt Limited Warranty. Hyatt warrants that the IT Project Management Services will be performed in substantial accordance with the specifications set forth in Exhibit E. If any IT Project Management Services do not comply with this warranty, Franchisee must notify Hyatt in writing within thirty (30) days after completion of the IT Project Management Services. As to any valid warranty claim, Hyatt will at its option: (i) repair the defect; (ii) re-perform the defective IT Project Management Services; or (iii) refund sums paid by Franchisee to Hyatt for the defective IT Project Management Services. Following expiration of the warranty period, Franchisee accepts the IT Project Management Services in their "AS-IS" condition. The foregoing constitutes Franchisee's sole and exclusive remedies in response to a warranty claim. Hyatt makes no representation or warranty with respect to: (1) software, equipment, or goods manufactured, developed or provided by others, including Franchisee; (2) use of the IT Project Management Services in a manner contrary to instructions from Hyatt; (3) use of the IT Project Management Services in combination with goods or IT Project Management Services not delivered by Hyatt; (4) defects caused by Franchisee; or (5) other events outside the control of Hyatt.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, the franchisee has several key responsibilities regarding IT Project Management Services, as detailed in Exhibit E. The franchisee must perform all tasks identified as their responsibility in Exhibit E in a timely manner. Hyatt's ability to perform its IT Project Management Services depends on the franchisee's accurate and effective performance of these responsibilities, including providing written notice to Hyatt of the franchisee's designated representative. Failure to meet these obligations may hinder or delay Hyatt's services or require modifications to the scope of work, schedule, or fees.
Site preparation is a crucial responsibility of the Caption By Hyatt franchisee. This includes ensuring climate control, physical safety and security, adequate electrical and telecommunications utilities, and wiring for all necessary equipment. The franchisee must also provide workspace, supplies, hardware, and software as needed for each assignment. Additionally, the franchisee warrants that Hyatt's access to software licensed or controlled by the franchisee is permitted under applicable third-party license agreements. The franchisee also warrants that Hyatt's performance of IT Project Management Services will not infringe on any third-party intellectual property rights or violate any laws.
The Caption By Hyatt franchisee is responsible for procuring all software, equipment, and other goods required for their business operations directly from third-party vendors. Hyatt is not responsible for procuring these items unless otherwise agreed in writing. The franchisee must comply with all third-party agreements, including software licenses, and engage a third-party service provider to support all hardware and software installed at the hotel, effective from the date Hyatt completes its services. Furthermore, the franchisee must maintain appropriate data back-up and storage procedures and a disaster recovery and business continuity plan to address technology crises or system downtime.
These stipulations ensure that the Caption By Hyatt franchisee understands their obligations in setting up and maintaining the IT infrastructure, which is crucial for the hotel's operation. Franchisees should carefully review Exhibit E and related sections to fully understand these responsibilities and associated costs. Prospective franchisees should discuss these requirements in detail with Hyatt to clarify any ambiguities and ensure they are prepared to meet these obligations.