factual

What standards must a franchisee adhere to when constructing a new Caption By Hyatt Hotel?

Caption_By_Hyatt Franchise · 2025 FDD

Answer from 2025 FDD Document

If you are constructing a new Hotel at the site, you must design and construct the Hotel according to our Design and Construction Standards and Hotel System.

  • (4) Approve your initial design development documents and detailed plans for a new Hotel or renovation plans for conversion of an existing structure, including working drawings and specifications, if they comply with our Design and Construction Standards, Hotel System and System Standards.

You must prepare and submit the plans to us for our approval and change the plans as we specify.

You may not begin constructing, remodeling or developing the Hotel until we have approved the plans.

You may not change the approved plans, including by changing any structural or life safety equipment or systems, the number or type of guest rooms or common areas, or any architectural features, without our prior approval. (Section 2.1 and Exhibit B of Franchise Agreement)

Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 48–65)

What This Means (2025 FDD)

According to the 2025 FDD, a Caption By Hyatt franchisee constructing a new hotel must adhere to specific design and construction standards set by Hyatt. Before operations can begin, Hyatt must approve the site, ensuring it meets their requirements based on factors like demographics, traffic, competition, and physical characteristics. The franchisee must design and construct the hotel according to Hyatt's Design and Construction Standards and the Hotel System standards. Hyatt will communicate these specifications and requirements, and provide a briefing to the franchisee's managing owner or senior operations officer.

Specifically, Caption By Hyatt requires franchisees to submit initial design development documents and detailed plans, including working drawings and specifications, for approval. These plans must comply with Hyatt's Design and Construction Standards, Hotel System, and System Standards. Franchisees must make any changes Hyatt specifies and cannot begin construction until the plans are approved. Furthermore, franchisees cannot alter the approved plans without prior approval, especially concerning structural or life safety equipment, the number or type of guest rooms or common areas, or any architectural features.

These standards ensure uniformity and quality across all Caption By Hyatt hotels, protecting the brand's reputation and customer experience. Franchisees should be aware that Hyatt retains significant control over the design and construction process, and any deviations from the approved plans require their consent. This level of oversight is common in the franchise industry, as it helps maintain brand consistency and quality control. Franchisees should carefully review the Design and Construction Standards and Hotel System requirements to fully understand the scope of these obligations.

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.