Under what circumstances will the Caption By Hyatt Schedule automatically terminate?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
This Schedule may be terminated as follows:
- a. Either party may terminate this Schedule for any reason or no reason by notifying the other party in writing at least days ninety (90) days in advance. Notwithstanding the foregoing, in the event of termination by Owner pursuant to this subsection a. the effective date of such termination shall be no earlier than [Insert Date]6 ;
- b. This Schedule shall automatically terminate if (i) the Franchise Agreement expires or is terminated and Owner does not enter into a franchise agreement, hotel management agreement or hotel services agreement with Hyatt or its affiliate such that the Property continues to operate under a Hyatt brand or affiliation immediately following termination, or (ii) the Central Hotel Services by Hyatt Master Agreement expires or is terminated; and/or
- c. If either party commits a material breach of any provision of this Schedule and has failed to cure such breach within ten (10) days of receiving written notice, the other party may terminate this Schedule immediately upon written notice.
Source: Item 23 — Receipts (FDD pages 85–349)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt FDD, the circumstances for automatic termination of the Schedule are consistent across multiple service agreements. Specifically, the Schedule will automatically terminate if the Franchise Agreement expires or is terminated, and the Owner does not enter into a franchise agreement, hotel management agreement, or hotel services agreement with Hyatt or its affiliate. This ensures that the property continues to operate under a Hyatt brand or affiliation immediately following the termination of the initial agreement.
Additionally, the Schedule will automatically terminate if the Central Hotel Services by Hyatt Master Agreement expires or is terminated. This provision ensures that the service schedules remain tied to the overarching master agreement, preventing them from continuing independently if the master agreement is no longer in effect.
These automatic termination clauses provide clarity and protection for both Caption By Hyatt and the Owner, ensuring that the service agreements are aligned with the ongoing operation and branding of the hotel. A prospective franchisee should understand these conditions to be aware of the circumstances under which the Schedule will no longer be in effect, which could impact the services provided to the hotel.