In Virginia, what effect do statements, questionnaires, or acknowledgements signed by a Caption By Hyatt franchisee have on waiving claims under state franchise law?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
- The following paragraph is added to the end of Item 17 of the Franchise Disclosure Document:
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 Virginia, any statement, questionnaire, or acknowledgement signed by a franchisee at the start of their franchise relationship will not waive claims under Virginia franchise law. This includes claims of fraud in the inducement.
This means that a Caption By Hyatt franchisee in Virginia cannot waive their rights to sue under state franchise law through any document signed when starting the franchise. This protection ensures that franchisees retain their legal rights, even if they have signed agreements that might suggest otherwise.
This provision also states that franchisees cannot disclaim reliance on statements made by Caption By Hyatt, its franchise sellers, or anyone acting on their behalf. This ensures that franchisees can hold the franchisor accountable for representations made during the franchise sales process. This protection supersedes any other conflicting terms in any document executed in connection with the franchise agreement.