What section of the Baymont Inn Suites FDD discusses dispute resolution by arbitration?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
The following provisions supersede and control any conflicting provisions of the Franchise Agreement:
Illinois law governs the Franchise Agreement.
In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in the Franchise Agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, the Franchise Agreement may provide for arbitration to take place outside of Illinois.
Franchisees' rights upon termination and non-renewal are set forth in Sections 19 and 20 of the Illinois Franchise Disclosure Act.
In conformance with Section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provi
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 81–85)
What This Means (2025 FDD)
According to the 2025 Baymont Inn Suites FDD, Item 22, which covers contracts, addresses dispute resolution through arbitration, specifically in relation to Illinois law. The FDD states that while Illinois law governs the Franchise Agreement, and any provision designating jurisdiction and venue outside of Illinois is void under the Illinois Franchise Disclosure Act, the Franchise Agreement may still allow for arbitration to occur outside of Illinois.
This means that while a Baymont Inn Suites franchisee in Illinois cannot be forced to litigate a dispute in another state, the franchise agreement can still mandate that arbitration take place outside of Illinois. Arbitration is a form of alternative dispute resolution where a neutral third party hears both sides of a dispute and makes a binding decision. This can be a quicker and less expensive method of resolving disputes compared to going to court.
For a prospective Baymont Inn Suites franchisee, especially those in Illinois, it's crucial to understand the implications of this clause. While the franchisee cannot be forced to litigate out of state, they may be required to participate in arbitration outside of Illinois. Franchisees should carefully review the Franchise Agreement and consult with legal counsel to fully understand their rights and obligations regarding dispute resolution.