What is Hyatt NOT representing if it consents to a transfer related to a Caption By Hyatt franchise?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Hyatt's consent to a transfer is not a representation of the fairness of the terms of any contract between Franchisee (or its Owners) and the transferee, a guarantee of the Hotel's or transferee's prospects of success, or a waiver of any claims Hyatt has against Franchisee (or its Owners) or of Hyatt's right to demand the transferee's full compliance with this Agreement or any other agreement with Franchisee or the transferee.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, Hyatt's consent to a transfer of a franchise does not constitute several guarantees or representations. Specifically, Hyatt is not representing that the terms of any contract between the franchisee (or its owners) and the transferee are fair. This means that Hyatt is not vouching for the financial or contractual arrangements made between the parties involved in the transfer.
Furthermore, Hyatt's consent is not a guarantee of the hotel's or the transferee's future success. The approval of the transfer does not indicate that Hyatt believes the new ownership will be profitable or well-managed. The success of the hotel under new ownership remains the responsibility of the transferee.
Finally, Hyatt's consent to a transfer does not waive any existing claims that Hyatt may have against the franchisee (or its owners). It also does not waive Hyatt's right to demand full compliance with the franchise agreement from the transferee. Therefore, even after a transfer, Hyatt retains all rights and claims it had prior to the transfer, and the new franchisee is expected to adhere to all terms of the franchise agreement.