What is a Caption By Hyatt franchisee acknowledging regarding representations about potential sales, income, or profits?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Hyatt expressly disclaims making, any representation, warranty or guaranty, express or implied, as to the actual or potential volume, sales, income or profits of the Hotel or any other Brand Hotel, and any information Franchisee has acquired from other Brand Hotel owners, including information regarding their sales, profits or cash flows, is not information obtained from Hyatt, and Hyatt makes no representation about that information's accuracy.
- (c) Franchisee represents, warrants and acknowledges that it has no knowledge of any representations made about the Brand Hotel franchise opportunity by Hyatt, its Affiliates or any of their respective officers, directors, managers, owners or agents that are contrary to the statements made in Hyatt's franchise disclosure document or to the terms and conditions of this Agreement.
- (d) Franchisee represents, warrants and acknowledges that it is relying solely on Hyatt, and not on any Affiliate of Hyatt, with regard to Hyatt's financial and other obligations under this Agreement, and no employee or other person speaking on behalf of, or otherwise representing, Hyatt has made any statement or promise to the effect that Hyatt's Affiliates guarantee Hyatt's performance or financially back Hyatt.
- 19.3 No Waiver or Disclaimer of Reliance in Certain States. The following provision applies only to franchisees and franchises that are subject to state franchise registration/disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin:
No statement, questionnaire, or acknowledgement signed or agreed to by Franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by Hyatt, any franchise seller, or any other person acting on behalf of Hyatt. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, a franchisee acknowledges several key points regarding potential sales, income, or profits. Specifically, Hyatt disclaims any express or implied representation, warranty, or guarantee regarding the actual or potential volume, sales, income, or profits of the Caption By Hyatt hotel. This means that Hyatt does not assure any level of financial performance.
Furthermore, the franchisee acknowledges that any information they may have obtained from other Caption By Hyatt hotel owners, including data about their sales, profits, or cash flows, was not provided by Hyatt. Hyatt makes no representations about the accuracy of such information. This is a standard practice in franchising, as franchisors typically do not guarantee the financial success of individual franchise locations due to varying market conditions and management capabilities.
Additionally, the franchisee represents, warrants, and acknowledges that they are not aware of any representations made about the Caption By Hyatt franchise opportunity by Hyatt, its affiliates, or their respective officers, directors, managers, owners, or agents that contradict the statements made in Hyatt's franchise disclosure document or the terms and conditions of the agreement. This clause aims to protect Hyatt from potential claims based on verbal or written representations that are not included in the official FDD or franchise agreement. Franchisees in certain states (California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin) cannot waive claims under state franchise law or disclaim reliance on statements made by Hyatt.