Can either party terminate discussions regarding a transaction related to Caption By Hyatt at any time?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
By receiving the Confidential Information, neither party nor their respective officers, directors, employees, agents, prospective lenders, consultants, or principals are under any obligation to negotiate in respect of a transaction with respect to the Property or Business, the parties will not be bound by any verbal agreement, and either party may terminate at any time discussions with the other party, its officers, directors, employees, agents, prospective lenders or principals, at its sole and absolute discretion.
Source: Item 23 — Receipts (FDD pages 85–349)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, both parties involved in discussions regarding a transaction related to the Property or Business have the right to terminate those discussions at any time, at their discretion. This is explicitly stated in the agreement, ensuring that neither party is obligated to continue negotiations if they no longer wish to pursue the transaction. This condition applies to the company, Hyatt, and their respective officers, directors, employees, agents, prospective lenders, or principals.
This provision protects both Caption By Hyatt and the potential franchisee by allowing either party to walk away from the deal if the terms are not agreeable or if circumstances change. It ensures that neither party is forced into a transaction that they do not believe is in their best interest. This flexibility is particularly important in franchise agreements, which often involve significant long-term commitments and investments.
It is important to note that while either party can terminate discussions at any time, any confidential information shared during these discussions must be handled according to the confidentiality terms outlined in the agreement. This includes the immediate destruction of all confidential information and copies upon termination of discussions, with certain exceptions for legal or compliance requirements. This ensures that sensitive information remains protected even if the transaction does not proceed.