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franchise agreement. The Hyatt International group, on the other
hand, was opposed to franchising.
As a result, on March 16, 1979, a compromise agreement was
signed, under which Odakyu would operate the hotel, and the Hyatt
International group would provide sales, reservations and
information services, manuals, policies and training materials,
and related materials, all of which are made available to hotels
involved with the Hyatt International group. In exchange, Odakyu
agreed to pay $300,000 per year for 3 years and the greater of
$300,000 per year or 10 percent of gross room revenues received
from non-Japanese guests thereafter. In addition, at Odakyu’s
request, Hyatt International would make available numerous
optional services, including purchasing, operational management
services, and technical assistance for these services; generally,
Odakyu would pay at cost. Odakyu was allowed the use of the
Hyatt names, with Hyatt International’s written approval prior to
using the Hyatt name on the hotel. Odakyu agreed to promote
Hyatt International hotels by including the display of materials
in the rooms and lobby areas of its hotels and making
reservations for other Hyatt International hotels.
An August 22, 1979, amendment replaced the $300,000/10-
percent terms with a fixed $100,000 annual royalty for a 10-year
term in exchange for Odakyu’s use of the Hyatt name. In
addition, the amendment provided for Hyatt International to
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