Are there any exceptions to the application of Illinois law in the Caption By Hyatt franchise agreement?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| w. Choice of law | 14.2 of Franchise Agreement; 8C of Confidentiality Agreement; 16 of Hosting Services Agreement; 11 of Central Services Agreement | Except for Federal Arbitration Act and other federal law, and subject to state law, Illinois law applies. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 75–81)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, the franchise agreement is generally governed by Illinois law. However, there are exceptions. The application of Illinois law is subject to the Federal Arbitration Act, other federal laws, and state law. This means that while Illinois law is the primary governing law, federal law, particularly the Federal Arbitration Act, takes precedence where applicable. Additionally, other state laws may apply, potentially based on where the franchisee is located or where the hotel operates.
For a prospective Caption By Hyatt franchisee, this means understanding that while Illinois law provides the foundational legal framework for the franchise agreement, certain aspects could be superseded by federal laws or the laws of their specific state. This is a fairly standard practice in franchising, as federal laws often address issues like arbitration, and state laws can govern specific aspects of business operations or consumer protection.
It is important for franchisees to be aware of these potential conflicts and to seek legal counsel to understand how these different layers of laws may affect their rights and obligations under the Caption By Hyatt franchise agreement. Franchisees should also be aware that the agreement includes clauses related to dispute resolution, choice of forum, and other legal considerations that are subject to these exceptions.