Under what circumstances will the Caption By Hyatt agreement automatically terminate due to assignment?

According to the 2025 Caption By Hyatt Franchise Disclosure Document, the agreement will automatically terminate upon any Flag Change by the owner. A Flag Change is defined as any termination of Hyatt's franchise relationship with the owner or any change resulting in the property ceasing to be under a management, franchise, or similar agreement with a direct or indirect subsidiary of Hyatt Hotels Corporation.

This means that if the Caption By Hyatt franchise agreement is terminated, or if the property ceases to be managed or franchised by Hyatt or one of its subsidiaries, the agreement will automatically end. This provision protects Hyatt's brand and ensures that properties operating under the Caption By Hyatt name adhere to Hyatt's standards and maintain a consistent brand identity.

For a prospective Caption By Hyatt franchisee, this clause highlights the importance of maintaining a good relationship with Hyatt and adhering to the terms of the franchise agreement. Failure to do so could result in the termination of the agreement and the loss of the franchise. It also means that the franchisee cannot transfer the agreement to another brand without triggering automatic termination.