What is the term length of a Caption By Hyatt successor franchise agreement?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
d this Agreement in reliance on any particular direct or indirect owner, officer or employee remaining with Hyatt in that capacity. Hyatt may change its ownership or form and/or assign this Agreement and any other agreement to a third party without restriction. After Hyatt's assignment of this Agreement to a third party who expressly assumes the obligations under this Agreement, Hyatt no longer will have any performance or other obligations under this Agreement. Such an assignment shall constitute a release of Hyatt and a novation with respect to this Agreement, and the assignee shall be liable to Franchisee as if it had been an original party to this Agreement.
ARTICLE XIII
SUCCESSOR FRANCHISE
13.1 Right to a Successor Franchise Agreement. When this Agreement expires, if Franchisee (and, as applicable, each Guarantor): (a) has substantially complied with this Agreement during its Term and is in full compliance with this Agreement (including all System Standards) as of the date upon which this Agreement expires; (b) then meets Hyatt's then applicable standards for franchisees and owners of franchisees of Brand Hotels; (c) has received passing Quality Assurance Scores (as defined in the System Standards) on all evaluations conducted during the preceding three (3)-year period;
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, the term of a successor franchise agreement is for ten years. Specifically, if a franchisee meets certain conditions, Hyatt will offer the right to enter into a successor franchise agreement to continue operating the hotel as a Caption By Hyatt hotel. This term commences immediately upon the expiration of the original agreement and expires ten years from that date.
To be eligible for a successor franchise agreement, the franchisee must have substantially complied with the original agreement, meet Hyatt's standards for franchisees, have passing Quality Assurance Scores on all evaluations during the preceding three-year period, and have the right to maintain possession of the hotel for at least ten years following the original agreement's expiration. The franchisee must also provide written notice of their election to exercise the Successor Franchise Right no more than 21 months, and no less than 18 months, before the agreement expires.
This ten-year term for a successor franchise agreement provides a degree of long-term stability for franchisees who successfully operate their Caption By Hyatt hotels and meet the brand's standards. However, franchisees should be aware of the conditions they must meet to qualify for a successor agreement and the notification deadlines they must adhere to. Failing to meet these conditions or deadlines could result in the loss of the franchise at the end of the original term.