What rights does Hyatt have regarding the use of Hotel IP for a Caption By Hyatt hotel?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee hereby grants Hyatt and its Affiliates the right to use the Hotel IP in connection with the marketing, promotion, and publicity of the Hotel, the Proprietary Marks, other Brand Hotels, Hyatt Network Hotels, and Hyatt's loyalty program(s), and otherwise to perform Hyatt's obligations under this Agreement, including use of the Hotel IP in connection with the CRS, the Hotel System Website, and any other media, technology or device now known or hereafter developed, without further authorization from or remuneration to Franchisee. As part of this license, Hyatt and its Affiliates have the right to use, copy, publish, distribute, and license others to use the Hotel IP, as needed, and may alter, retouch, crop or use in composite form the
Hotel IP, in any way. Franchisee represents and warrants that Franchisee owns or has all valid rights to use the Hotel IP and that use of the Hotel IP by Hyatt and its Affiliates as permitted hereunder will not violate the rights of any third party.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 FDD, Hyatt and its Affiliates are granted specific rights regarding the use of Hotel IP (Intellectual Property) in connection with a Caption By Hyatt franchise. The franchisee grants Hyatt the right to use the Hotel IP for marketing, promotion, and publicity of the hotel, the Proprietary Marks, other Brand Hotels, Hyatt Network Hotels, and Hyatt's loyalty program(s). This also extends to fulfilling Hyatt's obligations under the franchise agreement, including use in connection with the CRS (Central Reservation System), the Hotel System Website, and any other media or technology.
This license allows Hyatt and its Affiliates to use, copy, publish, distribute, and license others to use the Hotel IP as needed. Hyatt also has the right to alter, retouch, crop, or use the Hotel IP in composite form in any way they deem necessary. This broad grant of rights ensures that Hyatt has the flexibility to promote the Caption By Hyatt brand and the hotel effectively across various platforms and media.
The franchisee represents and warrants that they own or have all valid rights to use the Hotel IP and that Hyatt's use of the Hotel IP will not infringe upon the rights of any third party. This places a responsibility on the franchisee to ensure they have the necessary permissions and rights for any intellectual property they provide for use as Hotel IP. This is a standard practice in franchising, where the franchisor needs to ensure it has the rights to market and promote the brand using various materials, while the franchisee must guarantee the IP's legitimacy.
In practical terms, this means that a Caption By Hyatt franchisee must be diligent in ensuring they have the proper rights to any images, logos, or other intellectual property they provide to Hyatt for use in marketing the hotel. Failure to do so could result in legal issues and potential liability for the franchisee. Hyatt's extensive rights to modify and use the Hotel IP also mean that the franchisee has limited control over how their intellectual property is ultimately presented in marketing materials.