Under what conditions will the Caption By Hyatt agreement 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]3 ;
- 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 Franchise Disclosure Document, the Digital Ancillary Services Program Schedule to the Central Hotel Services by Hyatt Master Agreement outlines specific conditions for automatic termination. This schedule, effective as of March 2025, will automatically terminate if the Caption By Hyatt Franchise Agreement expires or is terminated. However, this termination is conditional. To avoid automatic termination, the owner must enter into a new franchise agreement, a hotel management agreement, or a hotel services agreement with Hyatt or its affiliates. This new agreement must ensure that the property continues to operate under a Hyatt brand or affiliation immediately following the initial termination.
In practical terms, this means a Caption By Hyatt franchisee needs to maintain a continuous relationship with Hyatt to avoid an automatic termination of the Digital Ancillary Services Program Schedule. If a franchisee's initial agreement is ending, they must proactively negotiate a renewal or a new agreement that keeps the property within the Hyatt system. Failure to do so will not only end the franchise agreement but also the ancillary services schedule, impacting the services provided to the hotel.
Additionally, the schedule will automatically terminate if the Central Hotel Services by Hyatt Master Agreement expires or is terminated. This highlights the interconnectedness of the various agreements and schedules within the Caption By Hyatt franchise system. Franchisees must be aware of the terms and expiration dates of all related agreements to ensure continued operation and service provision.
This automatic termination clause is a standard practice in franchising, designed to protect the brand and ensure consistent operation across all franchised locations. Caption By Hyatt franchisees should carefully monitor their agreement terms and maintain open communication with Hyatt to manage renewals and avoid unintended service disruptions.