In which states does the 'No Waiver or Disclaimer of Reliance' provision apply to Caption By Hyatt franchisees?
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, a 'No Waiver or Disclaimer of Reliance' provision applies to franchisees in specific states. This provision ensures that franchisees do not waive certain rights or disclaim reliance on statements made by Caption By Hyatt or its representatives during the franchise commencement. This protection is particularly relevant in states with franchise registration and disclosure laws.
The provision applies to Caption By Hyatt franchisees and franchises subject to franchise registration/disclosure laws in the following states: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin. In these states, any statement, questionnaire, or acknowledgement signed by the franchisee cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Caption By Hyatt.
Furthermore, the 2025 FDD includes state-specific amendments that reinforce this protection. For example, the FDD adds a paragraph to Item 17 for franchisees in Hawaii, North Dakota and Virginia stating that no signed document can waive claims or disclaim reliance on statements made by the franchisor. These state-specific additions ensure that franchisees in these states receive additional protection under their respective franchise laws.
This 'No Waiver or Disclaimer of Reliance' provision is significant for prospective Caption By Hyatt franchisees as it protects their rights and ensures they can rely on the information provided by the franchisor during the franchise sales process. It also supersedes any conflicting terms in other documents, providing a clear legal standard for the franchise relationship in those states.