Can Hyatt demand compliance with every term of the Caption By Hyatt franchise agreement?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Hyatt and Franchisee will not waive or impair any right, power, or option this Agreement reserves (including Hyatt's right to demand compliance with every term, condition, and covenant or to declare any breach to be a default and to terminate this Agreement before the Term expires) because of any custom or practice that varies from this Agreement's terms; Hyatt's or Franchisee's failure, refusal, or neglect to exercise any right under this Agreement or to insist upon the other's compliance with this Agreement, including any System Standard; Hyatt's waiver of or failure to exercise any right, power, or option, whether of the same, similar, or different nature, with other Brand Hotels; the existence of franchise agreements for other Brand Hotels that contain provisions differing from those contained in this Agreement; or Hyatt's acceptance of any payments due from Franchisee after any breach of this Agreement. No special or restrictive legend or endorsement on any check or similar item given to either party will be a waiver, compromise, settlement, or accord and satisfaction. The receiving party is authorized to remove any legend or endorsement, and it will have no effect.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, Hyatt reserves the right to demand compliance with every term, condition, and covenant of the franchise agreement. This means that Caption By Hyatt can enforce all aspects of the agreement, and any deviation from the terms due to custom, practice, or previous leniency does not prevent Hyatt from later requiring strict adherence. Hyatt's rights are not waived even if they fail to insist on compliance initially or if other Caption By Hyatt franchises have different agreement terms.
This provision protects Caption By Hyatt's ability to maintain brand standards and uniformity across all its franchises. It prevents franchisees from claiming that past behavior or differing agreements with other franchisees excuse them from complying with the current agreement. The clause also clarifies that any special endorsements on checks or payments do not constitute a waiver or settlement.
For a prospective Caption By Hyatt franchisee, this means they must be prepared to adhere strictly to all terms of the franchise agreement. They cannot rely on informal practices or perceived inconsistencies to justify non-compliance. It is crucial to fully understand and be prepared to meet all obligations outlined in the agreement, as Caption By Hyatt retains the right to enforce every single term. This includes System Standards and any other operational requirements.
This clause is fairly standard in franchising, as franchisors need to maintain consistency and protect their brand. However, franchisees should be aware of the implications and ensure they are capable of meeting all requirements. It also highlights the importance of seeking clarification on any ambiguous terms before signing the agreement, as later claims of misunderstanding may not be a valid defense against enforcement.