Under what conditions can Hyatt terminate the Caption By Hyatt agreement with the Owner?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
a. Termination by Hyatt. Notwithstanding any minimum agreed term, Hyatt may, by written notice to Owner, terminate this Agreement: (i) upon any material breach by Owner which such material breach is not remedied within thirty (30) days of written notice to Owner setting out the nature of such breach and requiring its remedy; (ii) upon the termination of the License Agreement in accordance with its terms; or (iii) at any time for any reason or no reason upon thirty (30) days written notice to Owner.
c.
Termination for Assignment.
This Agreement shall automatically terminate upon any Flag Change by Owner.
For purposes of this clause, "Flag Change" means any termination of Hyatt's franchise relationship with Owner or any change resulting in the Property ceasing to be under a management, franchise or similar agreement with a direct or indirect subsidiary of Hyatt Hotels Corporation.
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 terminate the agreement with the Owner under several conditions. Hyatt may terminate the agreement if the Owner commits a material breach of the agreement and fails to remedy the breach within thirty (30) days of receiving written notice from Hyatt that specifies the nature of the breach and requires it to be fixed. Additionally, Hyatt can terminate the agreement if the License Agreement is terminated according to its own terms.
Furthermore, Hyatt has the right to terminate the agreement at any time, for any reason or even without a specific reason, by providing the Owner with thirty (30) days written notice. The agreement will also automatically terminate if there is any Flag Change by the Owner, which is defined as any termination of Hyatt's franchise relationship with the Owner or any change that results in the property no longer being under a management, franchise, or similar agreement with a direct or indirect subsidiary of Hyatt Hotels Corporation.
These termination conditions are important for a prospective Caption By Hyatt franchisee to consider, as they outline the circumstances under which the franchise agreement can be terminated by Hyatt. Understanding these conditions can help the franchisee assess the risks and obligations associated with the franchise agreement and ensure compliance to avoid potential termination.