If litigation is necessary, in which state must it generally occur for Caption By Hyatt?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| v. Choice of forum | 14.3 of Franchise Agreement; 16 of Hosting Services Agreement; 11 of Central Services Agreement | Subject to arbitration obligation and state law, litigation generally must be in our home state (currently Illinois). |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 75–81)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, litigation generally must occur in Illinois, which is the brand's home state. This is subject to both the arbitration obligation and state law.
This means that if a Caption By Hyatt franchisee has a dispute with the franchisor that escalates to litigation, the franchisee will likely need to pursue the case in Illinois, regardless of where their own business is located. This could involve significant travel expenses, hiring local counsel in Illinois, and becoming familiar with Illinois state laws and court procedures.
However, it's important to note that this choice of forum is subject to the arbitration obligation. The FDD states that Caption By Hyatt and the franchisee must arbitrate all disputes at a location the arbitrator chooses within 10 miles of their then current principal business address (currently Chicago, Illinois). Therefore, many disputes may be resolved through arbitration in Illinois rather than through formal litigation. Additionally, the choice of forum is subject to state law, which could potentially override the Illinois forum selection clause in certain circumstances.