Does the Caption By Hyatt Guaranty survive the expiration or termination of the Franchise Agreement?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Without affecting the obligations of the undersigned under this Guaranty, Hyatt may, without notice to the undersigned, extend, modify, supplement, waive strict compliance with, or release all or any provisions of the Franchise Agreement or any indebtedness or obligation of Franchisee, or settle, adjust, release, or compromise any claims against Franchisee or any other guarantor, make advances for the purpose of performing any obligations of Franchisee under the Franchise Agreement, assign the Franchise Agreement
or the right to receive any sum payable under the Franchise Agreement, and the undersigned each hereby jointly and severally waive notice of same. The undersigned expressly acknowledge that the obligations hereunder survive the expiration or termination of the Franchise Agreement.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, the obligations of the Guarantor, who is guaranteeing the franchisee's performance, do indeed survive the expiration or termination of the Franchise Agreement. The FDD specifies that the Guarantor's obligations continue even after the agreement ends.
Caption By Hyatt may modify or release provisions of the Franchise Agreement or any obligations of the franchisee without affecting the Guarantor's obligations. The Guarantor also waives notice of these changes. This means that even if Hyatt makes concessions to the franchisee, the Guarantor remains fully responsible.
The Guarantor's obligations are not released or diminished by various events, such as the franchisee's disability, lack of authority, or the cessation of the franchisee's liability. The Guarantor's liability remains in effect even if the Franchise Agreement is extended or modified, and the Guarantor waives notice of any renewals, extensions, modifications, or transfers. This ensures that Hyatt has a continuing guarantee of performance regardless of changes to the Franchise Agreement or the franchisee's circumstances.