What notices does the Guarantor waive under the Caption By Hyatt Guaranty?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) Guarantor hereby waives: (i) all rights to payments and claims for reimbursement or subrogation that Guarantor may have against Franchisee arising as a result of the undersigned's execution of and performance under this Guaranty, for the express purpose that none of the undersigned shall be deemed a "creditor" of Franchisee under any applicable bankruptcy law with respect to Franchisee's obligations to Hyatt; (ii) all rights to require Hyatt to proceed against Franchisee for any payment required under the Franchise Agreement, proceed against or exhaust any security from Franchisee, take any action to assist any of the undersigned in seeking reimbursement or subrogation in connection with this Guaranty or pursue, enforce or exhaust any remedy, including any legal or equitable relief, against Franchisee; (iii) any benefit of, any right to participate in, any security now or hereafter held by Hyatt; and (iv) acceptance and notice of acceptance by Hyatt of Guarantor's undertakings under this Guaranty, all presentments, demands and notices of demand for payment of any indebtedness or non-performance of any obligations hereby guaranteed, protest, notices of dishonor, notices of default to any party with respect to the indebtedness or nonperformance of any obligations hereby guaranteed (except as otherwise expressly provided herein or in the Franchise Agreement), and any other notices and legal or equitable defenses to which Guarantor may be entitled.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, the Guarantor waives several notices related to the guaranty. Specifically, the Guarantor waives acceptance and notice of acceptance by Hyatt of the Guarantor's undertakings, all presentments, demands, and notices of demand for payment of any indebtedness or non-performance of any obligations guaranteed. The Guarantor also waives protest, notices of dishonor, notices of default to any party regarding the guaranteed indebtedness or nonperformance, except as expressly provided in the Guaranty or the Franchise Agreement. Finally, the Guarantor waives any other notices and legal or equitable defenses to which they may be entitled.
In simpler terms, this means that the Guarantor gives up the right to receive certain formal notifications from Caption By Hyatt. These include notifications that Hyatt has accepted the Guarantor's promise to guarantee the franchisee's obligations, demands for payment if the franchisee doesn't pay, and notices of default if the franchisee fails to meet their obligations. The only exceptions to this waiver are notices that are specifically required elsewhere in the Guaranty agreement itself or in the Franchise Agreement.
This waiver is significant because it streamlines the process for Caption By Hyatt to take action against the Guarantor if the franchisee defaults. By waiving these notices, the Guarantor agrees to be held responsible without needing to be informed of every step Hyatt takes to pursue the franchisee. This is a common practice in franchising to ensure that the franchisor can act quickly to protect its interests. Prospective franchisees should carefully review these waivers with their legal counsel to fully understand their implications.