In Maryland, can a statement, questionnaire, or acknowledgement signed by a Caption By Hyatt franchisee disclaim reliance on any statement made by the franchisor, any franchise seller, or any other person acting on the franchisor's behalf?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
The following provision applies only to franchisees and franchises that are subject to the state franchise registration/disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin:
No statement, questionnaire, or acknowledgement signed or agreed to by you in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by us, any franchise seller, or any other person acting on our behalf. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — Receipts (FDD pages 85–349)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, if you are a franchisee in Maryland, any statement, questionnaire, or acknowledgement that you sign in connection with starting your franchise cannot waive claims under Maryland franchise law. This includes claims related to fraud.
Specifically, you cannot sign anything that disclaims your reliance on statements made by Caption By Hyatt, its franchise sellers, or anyone acting on their behalf. This protection is in place because Maryland franchise law aims to ensure franchisees are not bound by agreements that prevent them from pursuing legal recourse if they believe they were misled or defrauded.
This provision overrides any other conflicting terms in any document you sign related to the Caption By Hyatt franchise. This means that even if another part of the franchise agreement seems to suggest you are waiving such rights, this specific clause protects your ability to make claims under Maryland franchise law.