Does the Caption By Hyatt Guaranty cover amendments or modifications to the Franchise Agreement?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
this liability will not be diminished, relieved, or otherwise affected by any extension of time, credit, or other indulgence that Hyatt may from time to time grant to Franchisee or any other person or entity, including, without limitation, the acceptance of any partial payment or performance or the compromise or release of any claims (including the release of other guarantors), none of which will in any way modify or amend this Guaranty, which will be continuing and irrevocable during and after the term of the Franchise Agreement (including extensions) for so long as any performance is or might be owed under the Franchise Agreement by Franchisee or any of its guarantors and for so long as Hyatt has any cause of action against Franchisee or any of its guarantors; and (6) this Guaranty will continue in full force and effect for (and as to) any extension or modification of the Franchise Agreement and despite the transfer of any direct or indirect interest in the Franchise Agreement or Franchisee, and Guarantor waives notice of any and all renewals, extensions, modifications, amendments, or transfers.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, the Guaranty covers extensions or modifications to the Franchise Agreement. The Guarantor agrees that their liability will continue in full force and effect for any extension or modification of the Franchise Agreement.
Specifically, the Guarantor waives notice of any renewals, extensions, modifications, amendments, or transfers related to the agreement. This means that Caption By Hyatt can make changes to the Franchise Agreement without needing to notify the Guarantor, and the Guarantor's obligations will remain in place.
This provision ensures that the Guaranty remains effective even if the Franchise Agreement is altered or extended, providing Caption By Hyatt with continuous protection. Prospective franchisees should understand that the Guaranty is a long-term commitment that is not easily discharged, even if the terms of the Franchise Agreement change over time.