What are the Caption By Hyatt franchisee's obligations regarding the period of time in which claims must be brought?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
14.6 Limitations of Claims. EXCEPT FOR CLAIMS ARISING FROM FRANCHISEE'S NON-PAYMENT OR UNDERPAYMENT OF AMOUNTS FRANCHISEE OWES HYATT OR ANY OF ITS AFFILIATES, ANY AND ALL CLAIMS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR HYATT'S (OR ANY OF ITS AFFILIATES') RELATIONSHIP WITH FRANCHISEE WILL BE BARRED UNLESS A LEGAL PROCEEDING (IN THE REQUIRED OR PERMITTED FORUM) IS COMMENCED WITHIN EIGHTEEN (18) MONTHS FROM THE DATE ON WHICH THE PARTY ASSERTING THE CLAIM KNEW OR SHOULD HAVE KNOWN OF THE FACTS GIVING RISE TO THE CLAIMS.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, franchisees face a limitation on the time they have to bring claims against Hyatt. Except for claims arising from non-payment or underpayment of amounts owed to Hyatt or its affiliates, any claims related to the franchise agreement or the relationship with Hyatt must be initiated within eighteen months. This period begins from the date the party asserting the claim knew or should have known about the facts that led to the claim.
This provision means a Caption By Hyatt franchisee needs to be diligent in identifying and pursuing any potential legal claims against the franchisor. Missing this deadline could result in the claim being completely barred, regardless of its merit. This limitation applies to a wide range of potential disputes, making it crucial for franchisees to maintain thorough records and seek legal advice promptly if they believe they have a claim.
It is important to note the exception for claims related to non-payment or underpayment, which are not subject to this 18-month limitation. This likely means Hyatt has a longer period to pursue franchisees for unpaid fees. The relatively short 18-month window for other claims underscores the importance of proactive communication and dispute resolution to avoid potential legal issues with Caption By Hyatt. Franchisees should consult with an attorney to fully understand their rights and obligations under the franchise agreement and to ensure timely action on any potential claims.