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In which states are the additional franchisee acknowledgements NOT required for a Caption By Hyatt franchise agreement?

Caption_By_Hyatt Franchise · 2025 FDD

Answer from 2025 FDD Document

The following representations, warranties and acknowledgements shall be made by and binding on Franchisee, unless this Agreement and/or the relationship between Hyatt and Franchisee is subject to state franchise registration and/or disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington or Wisconsin.

Source: Item 22 — Contracts (FDD page 85)

What This Means (2025 FDD)

According to Caption By Hyatt's 2025 Franchise Disclosure Document, additional franchisee acknowledgements are not required if the franchise agreement is NOT subject to state franchise registration and/or disclosure laws in certain states. These states are California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin.

This means that if a Caption By Hyatt franchise is located in any state other than the ones listed, the franchisee will need to make specific representations, warranties, and acknowledgements as part of the franchise agreement. These acknowledgements likely cover aspects of the franchisee's independent investigation, understanding of risks, and reliance on the FDD rather than any external representations.

For prospective franchisees, this distinction is important because it affects the legal obligations and potential liabilities associated with the franchise agreement. Franchisees in states without franchise registration/disclosure laws may have fewer legal protections and must be especially diligent in their due diligence and understanding of the franchise opportunity. It is advisable to seek legal counsel to fully understand the implications of these acknowledgements and how they may affect your rights and responsibilities as a franchisee.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.