Under what condition will Hyatt provide System Services to a Caption By Hyatt franchisee?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Mandatory Services and Non Mandatory Services comprise the System Services. If you are in full compliance with your obligations under the Franchise Agreement, we or one or more members of the Hyatt Group will provide you those System Services that we periodically specify. You must participate in all Mandatory Services and related programs and may (at your option) participate in any or all Non-Mandatory Services and related programs, in the manner that we periodically specify. You must acquire all Mandatory Services (as we periodically modify them) only from a member of the Hyatt Group. We may periodically add to, delete from, and otherwise modify these System Services, and the scope of and manner of providing System Services, upon notice to you. Also, due to the differences in products, services, markets and hospitality experiences among Brand Hotels and other Hyatt Network Hotels, we may, where we deem appropriate in our judgment: (a) classify certain System Services as Mandatory Services for the Hotel which we classify as Non-Mandatory Services or do not offer to other Brand Hotels and/or other Hyatt Network Hotels; (b) not provide to the Hotel certain System Services that we provide to other Brand Hotels and/or other Hyatt Network Hotels; and (c) limit the scope of those System Services provided to franchised Brand Hotels, such as by limiting the access that franchised Brand Hotels have to certain customer and other proprietary information for Hyatt Network Hotels other than the Hotel.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 40–45)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, Hyatt or a member of the Hyatt Group will provide System Services to a franchisee if the franchisee is in full compliance with their obligations under the Franchise Agreement. These System Services are comprised of Mandatory Services and Non-Mandatory Services.
Caption By Hyatt franchisees must participate in all Mandatory Services and related programs, but may choose whether or not to participate in Non-Mandatory Services. The franchisee must acquire all Mandatory Services only from a member of the Hyatt Group.
Hyatt may modify these System Services, including adding to or deleting from them, and change the scope and manner in which they are provided, as long as they provide notice to the franchisee. Hyatt may also classify certain System Services as Mandatory for a Caption By Hyatt hotel but classify them as Non-Mandatory or not offer them to other Brand Hotels or Hyatt Network Hotels. Hyatt may also choose not to provide certain System Services to a Caption By Hyatt hotel that they provide to other Brand Hotels or Hyatt Network Hotels, and limit the scope of System Services provided to franchised Brand Hotels.