What happens to a claim that is not submitted or filed as required in a Caption By Hyatt arbitration proceeding?

According to the 2025 Caption By Hyatt Franchise Disclosure Document, if a claim that would constitute a compulsory counterclaim as defined by the Federal Rules of Civil Procedure is not submitted or filed within the same arbitration proceeding as the original claim to which it relates, it is permanently barred.

This means that Caption By Hyatt franchisees must ensure that all relevant claims and counterclaims are presented during the arbitration. Failure to do so will result in the franchisee losing the right to pursue that claim in the future. This clause incentivizes franchisees to be thorough in presenting their cases during arbitration, as any omitted compulsory counterclaims cannot be raised later.

This requirement is intended to promote efficiency in dispute resolution, preventing parties from withholding related claims to be pursued in separate proceedings. Franchisees should consult with legal counsel to identify any potential compulsory counterclaims they may have and ensure they are properly submitted during the arbitration process to avoid forfeiting their rights.