Regarding the Caption By Hyatt franchise agreement, what is required for a waiver to be considered effective?
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 the 2025 Caption By Hyatt Franchise Disclosure Document, in certain states, any statement, questionnaire, or acknowledgement signed by the franchisee in connection with the franchise relationship cannot waive claims under applicable state franchise law, including fraud in the inducement.
Specifically, this provision applies to franchisees and franchises subject to franchise registration/disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin.
This means that Caption By Hyatt franchisees in these states retain their rights to pursue claims under state franchise laws, and cannot disclaim reliance on statements made by Caption By Hyatt or its representatives, regardless of any agreement to the contrary. This provision takes precedence over any conflicting terms in any document executed in connection with the franchise agreement.