Under the Caption By Hyatt agreement, what is a 'Receiving Party' defined as?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Each party (a "Receiving Party") acknowledges that it and its employees, subcontractors or agents may, in the course of satisfying its obligations hereunder, be exposed to or acquire information that is proprietary to or confidential to the other party (a "Disclosing Party").
Source: Item 23 — Receipts (FDD pages 85–349)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, a 'Receiving Party' is defined as each party, including its employees, subcontractors, or agents, who may be exposed to or acquire proprietary or confidential information from the other party, known as the 'Disclosing Party'. This definition is central to the confidentiality obligations outlined in the agreement.
As a Caption By Hyatt franchisee, understanding this definition is crucial because it establishes the scope of responsibility for protecting sensitive information. The franchisee, as a Receiving Party, must ensure that all employees, subcontractors, and agents are aware of and adhere to the confidentiality terms. This includes safeguarding financial terms, business plans, trade secrets, customer information, and other proprietary data.
The agreement specifies that the Receiving Party must hold all Confidential Information in strict confidence, disclose it only to employees with a need to know who are also advised to maintain confidentiality, and refrain from copying, reproducing, selling, or disclosing the information to third parties. Furthermore, the franchisee cannot use the Confidential Information for any purpose other than fulfilling their obligations under the agreement. This provision remains in effect even after the agreement expires or is terminated, highlighting the long-term importance of maintaining confidentiality.