Where will the arbitration proceedings be conducted for a Caption By Hyatt franchise dispute?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
The arbitration proceedings will be conducted by one (1) arbitrator and, except as this Section 14.1 otherwise provides, according to the AAA's then current commercial arbitration rules. The arbitrator must be a licensed attorney, have hotel industry experience, and be listed on the AAA's National Roster of Neutrals (or such other equivalent replacement roster of experienced arbitrators that the AAA designates). All proceedings shall be conducted at a suitable location chosen by the arbitrator that is within ten (10) miles of Hyatt's then current principal business address. The arbitrator shall have no authority to select a different hearing locale. All matters relating to arbitration will be governed by the Federal Arbitration Act (9 U.S.C. Sections 1 et seq.) and not by any state arbitration law.
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 Hyatt and a franchisee will take place at a location chosen by the arbitrator. This location must be within ten miles of Hyatt's principal business address at the time of the proceedings. The arbitrator does not have the authority to select a different location for the hearing. This ensures that any disputes are resolved in close proximity to Hyatt's headquarters.
This requirement could mean that a Caption By Hyatt franchisee would need to travel to Hyatt's principal business location for arbitration, regardless of where their franchise is located. This could result in additional travel expenses and logistical challenges for the franchisee. The FDD specifies that all proceedings will be governed by the Federal Arbitration Act, not state arbitration laws.
This arrangement is fairly common in franchising, as it allows the franchisor to manage disputes in a consistent and convenient location. However, prospective franchisees should consider the potential costs and burdens associated with this requirement before investing in a Caption By Hyatt franchise. Franchisees should confirm the current principal business address of Hyatt to fully understand the implications of this clause.