How can Hyatt or the franchisee waive an obligation under the Caption By Hyatt franchise agreement?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
- 18.3 Waiver of Obligations and Force Majeure. Hyatt and Franchisee may unilaterally waive or reduce any obligation of or restriction upon the other under this Agreement only by a signed written instrument, effective upon delivery of written notice to the other or another effective date stated in the notice of waiver. Any waiver granted will be without prejudice to any other rights Hyatt or Franchisee have, will be subject to continuing review, and may be revoked at any time and for any reason effective upon delivery of ten (10) days' prior written notice.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, both Hyatt and the franchisee can waive or reduce obligations or restrictions under the franchise agreement. However, such waivers must be documented through a signed written instrument. This instrument becomes effective upon delivery of written notice to the other party or on another specified effective date included in the waiver notice.
Any waiver provided is not comprehensive. It does not prevent either Hyatt or the franchisee from exercising other rights they possess. The waiver is subject to ongoing review and can be revoked at any time, for any reason.
To revoke a waiver, the revoking party must deliver a ten (10) days' prior written notice to the other party. This ensures that the other party is informed of the revocation and has time to adjust accordingly. This process provides a structured approach to modifying the terms of the franchise agreement, ensuring clarity and preventing misunderstandings between both parties.