Who may be the parties to any arbitration proceedings described in this section for a Caption By Hyatt franchise?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Hyatt and Franchisee agree that arbitration will be conducted on an individual, not a class-wide, basis; that only Hyatt and Franchisee (and/or their respective Related Parties, as applicable) may be the parties to any arbitration proceedings described in this Section 14.1; and that an arbitration proceeding between Hyatt and Franchisee (and/or their respective Related
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, the parties to any arbitration proceedings described in Section 14.1 are limited to Hyatt and the franchisee, along with their respective related parties. This means that only these specific entities can be involved in the arbitration process outlined in that section of the agreement.
This clause ensures that arbitration remains a private matter between Caption By Hyatt and its franchisees, preventing consolidation with disputes involving other parties. However, there's an exception: if a court or arbitrator deems the restriction on class-wide arbitration unenforceable, the arbitration clause does not apply, and the dispute will be resolved in a judicial proceeding.
This provision has significant implications for prospective franchisees. It prevents franchisees from joining together in a class action against Caption By Hyatt during arbitration. While Caption By Hyatt and the franchisee are bound to arbitrate disputes individually, they retain the right to seek temporary restraining orders or injunctive relief from a court, provided they also submit the dispute for arbitration on the merits. Understanding these conditions is crucial for any potential Caption By Hyatt franchisee.