Can the Owner assign or transfer the Caption By Hyatt agreement without Hyatt's consent?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
No Assignment.
Owner may not assign or transfer this Agreement or its rights and obligations hereunder, without the prior written consent of Hyatt.
Any unpermitted assignment shall be null and void.
Hyatt reserves the right at any time to transfer or assign this Agreement, or a portion thereof, without notice or consent.
Source: Item 23 — Receipts (FDD pages 85–349)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, the owner is restricted from assigning or transferring the agreement without obtaining prior written consent from Hyatt. If an owner attempts to make an assignment without this consent, the action will be considered null and void.
However, Hyatt retains the right to transfer or assign the agreement, or any portion of it, at any time without needing to provide notice or obtain consent from the owner. This clause highlights a significant power imbalance in favor of Hyatt regarding the transfer of the agreement.
This condition is fairly typical in franchising, as franchisors want to carefully control who joins their system. Prospective Caption By Hyatt franchisees should carefully consider this provision and seek legal counsel to fully understand the implications of not being able to freely transfer their franchise agreement.