Under what circumstances can Hyatt suspend the services provided to a Caption By Hyatt owner?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Hyatt reserves the right to suspend Services under any applicable Schedule if Owner has failed to timely pay or perform any of its obligations under this Agreement or any applicable Schedule for so long as Owner's failure to pay or perform continues.
Hyatt, without prejudice to its other rights at law or in equity, may suspend the Services: (i) upon a violation of any restriction or obligation listed in Section 1(b); (ii) if any misuse of the Services or misconduct with respect to the Services on the part of Owner or its employees, agents or end users creates, in Hyatt's sole and reasonable judgment, an imminent risk of material damage to Hyatt's network, facilities or other property or violation of any applicable laws or legal obligations; (iii) if Owner disrupts or causes harm to Hyatt's computers, systems, infrastructure, or provision of the Services to other parties; or (iv) upon request of a government authority.
Any such suspension shall be as limited in scope and duration as possible consistent with Hyatt's needs to protect its network, facilities and property.
Except in the case of suspension upon request of government authority, Owner shall continue to pay all Fees during the suspension period.
Service shall be promptly restored as soon as Hyatt determines, in its sole, reasonable discretion, that the default has been cured.
In addition, and without limiting Hyatt's other rights and remedies, if Owner fails to make any payment when due and such failure continues for forty-five (45) days or more, Hyatt may suspend Owner's access to the Services until such amounts are paid in full.
Source: Item 23 — Receipts (FDD pages 85–349)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, Hyatt can suspend services to a Caption By Hyatt owner under several specific circumstances. Hyatt reserves the right to suspend Services under any applicable Schedule if the Owner fails to timely pay or perform any of its obligations under this Agreement or any applicable Schedule, and this suspension will continue as long as the failure persists. This provision ensures that Hyatt can take action if a franchisee does not meet their financial or contractual responsibilities.
Additionally, Hyatt may suspend services if the Caption By Hyatt owner violates any restrictions or obligations outlined in Section 1(b) of the agreement. This includes actions such as propagating viruses, storing unlawful data, or any misuse or misconduct that creates an imminent risk of material damage to Hyatt's network, facilities, or property. Suspension can also occur if the owner disrupts or causes harm to Hyatt's computer systems, infrastructure, or the provision of services to other parties, or if a government authority requests it.
The suspension will be limited in scope and duration to protect Hyatt's interests, and unless the suspension is due to a government request, the Caption By Hyatt owner is still responsible for paying all fees during the suspension period. Services will be promptly restored once Hyatt determines that the default has been resolved. Furthermore, if the Caption By Hyatt owner fails to make any payment when due, and this failure continues for 45 days or more, Hyatt can suspend the owner's access to the services until all outstanding amounts are paid in full.
These suspension rights are typical in franchise agreements to protect the franchisor's brand, systems, and other franchisees. A prospective Caption By Hyatt franchisee should be aware of these conditions and ensure they understand their obligations to avoid potential service disruptions.