Can an arbitration proceeding between Caption By Hyatt and a franchisee be consolidated with any other arbitration proceeding?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
judgment upon the award may be entered in any court of competent jurisdiction.
Hyatt and Franchisee agree to be bound by the provisions of any limitation on the period of time in which claims must be brought under applicable law or this Agreement, whichever expires earlier. Hyatt and Franchisee further agree that, in any arbitration proceeding, each must submit or file any claim that would constitute a compulsory counterclaim (as defined by the Federal Rules of Civil Procedure) within the same proceeding as the claim to which it relates. Any claim that is not submitted or filed as required is forever barred. The arbitrator may not consider any settlement discussions or offers that might have been made by either Franchisee or Hyatt or any of their related parties.
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;
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, arbitration proceedings between Caption By Hyatt and a franchisee cannot be consolidated with any other arbitration proceeding involving Hyatt and another entity. This means that any dispute resolution through arbitration will be handled on an individual basis, specifically between Caption By Hyatt and the franchisee involved in that particular dispute.
This clause ensures that each dispute is treated separately, preventing the outcome of one arbitration from being influenced by other ongoing or past arbitrations. It protects Caption By Hyatt from having multiple, potentially unrelated issues being decided in a single proceeding. Similarly, it prevents a franchisee's case from being prejudiced by other franchisees' disputes with Caption By Hyatt.
However, there is an exception: if a court or arbitrator determines that the prohibition against consolidation is unenforceable, then the agreement to arbitrate the dispute becomes void, and the dispute will be resolved in a judicial proceeding. This provision ensures that if the consolidation restriction is deemed illegal or inapplicable, the parties can still seek resolution through the court system. This maintains access to a legal remedy while generally favoring individual arbitration.