Are there non-competition covenants after the Caption By Hyatt franchise is terminated or expires?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
ions of the franchise and related agreements. You should read these provisions in the agreements attached to this disclosure document.**
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| o. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 75–81)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, there are no non-competition covenants that apply after the franchise is terminated or expires. This information is summarized in Item 17, which outlines various aspects of the franchise agreement related to renewal, termination, transfer, and dispute resolution.
Specifically, the table within Item 17 addresses non-competition covenants during the term of the franchise, stating that while there is no covenant not to compete, neither the franchisee nor the hotel management company may be a Competing Brand Owner. However, when it comes to non-competition covenants after the franchise is terminated or expires, the summary indicates that this is 'Not applicable'.
This means that once the franchise agreement ends, a former Caption By Hyatt franchisee is generally free to engage in any business activity, including operating a competing hotel, without being legally restricted by a non-compete agreement. This could provide more flexibility for the franchisee's future business endeavors after leaving the Caption By Hyatt system.