Under what condition is Section 14.5 of the Caption By Hyatt Franchise Agreement deleted?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 14.2 of the Franchise Agreement is deleted in its entirety and replaced with the following language:
All matters relating to arbitration will be governed by the Federal Arbitration Act (9 U.S.C. Sections 1 et seq.). Except to the extent governed by the Federal Arbitration Act, the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C. Sections 1051 et seq.) or other federal law, and except as otherwise required by law for any claims arising under the Rhode Island Franchise Investment Act, this Agreement, the franchise, and all claims arising from the relationship between Hyatt (and/or any of its Affiliates) and Franchisee will be governed by the laws of the State of Illinois, without regard to its conflict of laws rules, except that any Illinois law regulating the offer or sale of franchises, business opportunities, or similar interests, or governing the relationship between a franchisor and a franchisee or any similar relationship, will not apply unless its jurisdictional requirements are met independently without reference to this Section.
The following language is added to the end of Section 14.3 of the Franchise Agreement:
However, subject to the parties' arbitration obligations, nothing in this Section affects Franchisee's right, to the extent required by applicable law with respect to claims arising under the Rhode Island Franchise Investment Act, to sue in Rhode Island for claims arising under that Act.
Source: Item 23 — Receipts (FDD pages 85–349)
What This Means (2025 FDD)
Based on the 2025 Caption By Hyatt Franchise Disclosure Document, there is no information provided that states under what condition Section 14.5 of the Franchise Agreement is deleted. The excerpt discusses modifications to Sections 14.2 and 14.3, but does not mention Section 14.5.
Without specific details in the FDD, it's difficult to assess the implications for prospective Caption By Hyatt franchisees. The absence of this information suggests that Section 14.5 may not be subject to any specific deletion conditions, or that such conditions are addressed elsewhere in the full Franchise Agreement document.
A prospective Caption By Hyatt franchisee should consult the full Franchise Agreement and directly ask the franchisor about the circumstances under which Section 14.5 might be deleted or modified. Understanding this section is crucial for comprehending the franchisee's rights and obligations under various scenarios.