Under what circumstances might a Caption By Hyatt hotel be relocated after its initial establishment?

According to Caption By Hyatt's 2025 Franchise Disclosure Document, a franchisee must operate the hotel from a site that Caption By Hyatt approves. The franchisee's rights are limited to operating the Caption By Hyatt hotel at the approved site. However, if all or a substantial portion of the hotel is condemned or suffers a casualty that requires the franchisee to close all or a portion of the hotel, the franchisee may relocate the Caption By Hyatt hotel to a location that Caption By Hyatt approves.

This means that a Caption By Hyatt franchisee cannot simply move the hotel to a new location without the franchisor's consent. The relocation must be due to unforeseen circumstances that render the original location unusable, such as condemnation or a major casualty. This is a fairly standard clause in franchise agreements, as franchisors want to maintain control over the location of their branded businesses.

For a prospective Caption By Hyatt franchisee, this clause highlights the importance of selecting a suitable location for the hotel. It also underscores the need for adequate insurance coverage to protect against potential losses from condemnation or casualties. While relocation is possible under certain circumstances, it is not guaranteed, as Caption By Hyatt must approve the new location. Therefore, franchisees should carefully consider the risks associated with the initial location and factor in the potential costs and challenges of relocation if it becomes necessary.