What must a Caption By Hyatt franchisee promise regarding the legality of discussions and the Franchise Agreement?

According to the 2025 Caption By Hyatt Franchise Disclosure Document, a prospective franchisee must promise that their discussions with Caption By Hyatt and, if applicable, their signing of the Franchise Agreement, do not violate any laws, breach any existing agreements, or require any consents from third parties. This promise is part of the broader confidentiality obligations that begin even before a Franchise Agreement is signed.

This requirement ensures that the franchisee is entering the agreement legally and ethically, without conflicting obligations. It protects Caption By Hyatt from potential legal issues that could arise if the franchisee is in violation of other agreements or laws. For example, if a franchisee has a non-compete agreement with a prior employer, signing the Caption By Hyatt Franchise Agreement could be a breach, leading to legal complications.

This type of clause is fairly standard in franchise agreements. It places the onus on the franchisee to ensure their participation is lawful and doesn't infringe on the rights of others. A prospective Caption By Hyatt franchisee should carefully review their existing legal obligations and seek legal counsel if necessary, to ensure they can make this promise truthfully and without reservation.