factual

What specific sections of the Caption By Hyatt Franchise Agreement's confidentiality and other covenants is the Management Company required to be bound by during and after its tenure as manager of the Hotel?

Caption_By_Hyatt Franchise · 2025 FDD

Answer from 2025 FDD Document

In consideration of the rights granted to Management Company under the Management Agreement and of Hyatt's consent (under the Franchise Agreement) to Management Company's operation of the Hotel, Management Company hereby acknowledges and ratifies the terms and conditions of the Franchise Agreement and agrees to fully observe and be bound by all terms, conditions and restrictions regarding the management and operation of the Hotel set forth in the Franchise Agreement for as long as Management Company operates the Hotel, as if and as though Management Company had executed the Franchise Agreement as "Franchisee," including, without limitation, all terms and conditions of ARTICLE IV and ARTICLE V of the Franchise Agreement (other than Section 4.2(a)). Management Company further agrees to be bound by the confidentiality and other covenants set forth in Sections 11.5, 11.6, and 11.7 of the Franchise Agreement (including all remedies available to Hyatt under the Franchise Agreement for breach thereof) during and subsequent to its tenure as manager of the Hotel. However, notwithstanding the foregoing, nothing in this Rider constitutes an agreement of Management Company: (a) to pay or assume any financial obligation of Franchisee to Hyatt or to any third party, including any obligation of Franchisee to pay Royalty Fees or System Services Charges or any liquidated damages pursuant to Section 16.5 of the Franchise Agreement; or (b) to be bound by any provision in ARTICLE XII of the Franchise Agreement. Management Company represents and warrants to Hyatt and Franchisee that Management Company is not a Competing Brand Owner, as defined in the Franchise Agreement.

Source: Item 22 — Contracts (FDD page 85)

What This Means (2025 FDD)

According to the 2025 Caption By Hyatt Franchise Disclosure Document, a Management Company operating a Caption By Hyatt hotel is bound by specific confidentiality and other covenants within the Franchise Agreement. The Management Company must adhere to the terms, conditions, and restrictions regarding the management and operation of the hotel as if it were the franchisee.

Specifically, the Management Company agrees to be bound by the confidentiality and other covenants outlined in Sections 11.5, 11.6, and 11.7 of the Franchise Agreement. This obligation extends not only during the period the Management Company is actively managing the hotel but also after its tenure as manager concludes. This ensures that confidential information and other covenants are protected even after the management agreement ends.

However, the Management Company is not obligated to fulfill any financial obligations of the franchisee to Hyatt or any third party. This includes the payment of Royalty Fees, System Services Charges, or any liquidated damages as per Section 16.5 of the Franchise Agreement. Additionally, the Management Company is not bound by any provision in Article XII of the Franchise Agreement. The Management Company also represents that it is not a Competing Brand Owner, as defined in the Franchise Agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.