Can arbitration be conducted on a class-wide basis for Caption By Hyatt franchise disputes?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Hyatt and Franchisee agree that arbitration will be conducted on an individual, not a class-wide, basis; that only Hyatt and Franchisee (and/or their respective Related Parties, as applicable) may be the parties to any arbitration proceedings described in this Section 14.1; and that an arbitration proceeding between Hyatt and Franchisee (and/or their respective Related
Parties) may not be consolidated with any other arbitration proceeding between Hyatt and any other person or entity. Notwithstanding the foregoing or anything to the contrary in this Section 14.1 or Section 18.2, if any court or arbitrator determines that all or any part of the preceding sentence is unenforceable with respect to a dispute that otherwise would be subject to arbitration under this Section 14.1, then all parties agree that this arbitration clause shall not apply to that dispute and that such dispute shall be resolved in a judicial proceeding in accordance with this ARTICLE XIV (excluding this Section 14.1).
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, arbitration will be conducted on an individual basis, not a class-wide basis. This means that any disputes between Hyatt and a franchisee must be handled separately and cannot be combined with disputes involving other franchisees. Only Hyatt and the individual franchisee (and/or their respective related parties) can be parties to the arbitration proceedings.
This clause prevents franchisees from joining together to pursue collective action against Caption By Hyatt through arbitration. It ensures that each franchisee's case is considered independently.
However, there is a condition. If a court or arbitrator determines that the clause preventing class-wide arbitration is unenforceable, then the agreement to arbitrate the dispute becomes void, and the dispute will be resolved in a judicial proceeding.