What is the scope of the Confidentiality Agreement that a prospective Caption By Hyatt franchisee must sign?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
You will sign the Confidentiality Agreement while we and you are evaluating whether to start a franchise relationship. You must keep confidential all information concerning development plans for particular sites or markets and information concerning our plans, strategies, operations, processes, and System Standards, including any information in the PIP that we conduct or prepare for your hotel. These obligations continue even if we and you do not sign a Franchise Agreement. You must take reasonable measures to ensure that your employees, agents and advisors comply with these restrictions and are responsible if they fail to do so. You also must promise us that our and your discussions and, if applicable, your signing a Franchise Agreement do not violate any laws, breach any agreements or require any consents.
We and our affiliates possess (and will continue to develop and acquire) Confidential Information, some of which constitutes trade secrets under applicable law, relating to developing and operating Brand Hotels. "Confidential Information" includes: (1) site selection criteria; (2) the substance, design, and construction of Brand Hotels and the Design and Construction Standards; (3) training and operations materials and modules; (4) methods, formats, specifications, standards, systems, procedures, sales and marketing techniques, knowledge, and experience used in developing and operating Brand Hotels; (5) marketing, advertising and promotional programs
for Brand Hotels; (6) Guest Information (defined below) and any information and data relating to guests and customers of other Brand Hotels and/or other Hyatt Network Hotels; (7) knowledge of specifications for and suppliers of FF&E and other products and supplies that are uniquely identified with Brand Hotels and/or other Hyatt Network Hotels; (8) any part of the Technology System and other computer software or other technology that is proprietary to us, our affiliates or the Hotel System, including digital passwords and identifications and any source code of, and data, reports, and other printed materials generated by, the software or other technology; (9) knowledge of the operating results and financial performance of Brand Hotels other than the Hotel; (10) graphic designs and related intellectual property; and (11) any negotiated provisions of the Franchise Agreement and any other agreements we sign with you**.**
Source: Item 14 — Patents, Copyrights, and Proprietary Information (FDD pages 68–71)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, a prospective franchisee must sign a Confidentiality Agreement while the franchisee and franchisor are evaluating whether to start a franchise relationship. This agreement requires the franchisee to keep confidential all information concerning development plans for particular sites or markets, as well as information concerning Caption By Hyatt's plans, strategies, operations, processes, and System Standards. This includes any information in the Property Improvement Plan (PIP) that Caption By Hyatt conducts or prepares for the hotel.
The obligations under the Confidentiality Agreement continue even if the franchisee and Caption By Hyatt do not ultimately sign a Franchise Agreement. The franchisee must take reasonable measures to ensure that their employees, agents, and advisors also comply with these restrictions and are responsible if they fail to do so. Additionally, the franchisee must promise that their discussions with Caption By Hyatt and, if applicable, their signing a Franchise Agreement do not violate any laws, breach any agreements, or require any consents.
Caption By Hyatt considers certain information as "Confidential Information", including site selection criteria; the substance, design, and construction of Brand Hotels and the Design and Construction Standards; training and operations materials and modules; methods, formats, specifications, standards, systems, procedures, sales and marketing techniques, knowledge, and experience used in developing and operating Brand Hotels; marketing, advertising and promotional programs for Brand Hotels; Guest Information and any information and data relating to guests and customers of other Brand Hotels and/or other Hyatt Network Hotels; knowledge of specifications for and suppliers of FF&E and other products and supplies that are uniquely identified with Brand Hotels and/or other Hyatt Network Hotels; any part of the Technology System and other computer software or other technology that is proprietary to Caption By Hyatt, its affiliates or the Hotel System, including digital passwords and identifications and any source code of, and data, reports, and other printed materials generated by, the software or other technology; knowledge of the operating results and financial performance of Brand Hotels other than the Hotel; graphic designs and related intellectual property; and any negotiated provisions of the Franchise Agreement and any other agreements Caption By Hyatt signs with the franchisee.