Where is the exclusive venue for any legal actions or claims related to the Crowne Plaza franchise agreement?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
The provisions of the License which permits all suits to be filed in Georgia is hereby deleted for residents of the State of Maryland and/or franchises to be operated in the State of Maryland.
Any provision in the License which designates jurisdiction or venue or requires the Licensee to agree to jurisdiction or venue, in a forum outside of North Dakota, is deleted from Licenses issued in the State of North Dakota.
Section 19-28.14 of the Rhode Island Franchise Investment Act provides that: "A provision in a franchise agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this Act." This provision will also apply to the Guaranty.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, the standard franchise agreement may specify that all suits must be filed in Georgia. However, this is subject to certain state-specific amendments that may override this provision. For instance, for residents of Maryland or franchises operated in Maryland, the provision that permits all suits to be filed in Georgia is deleted. Similarly, for franchises issued in North Dakota, any provision that designates jurisdiction or venue, or requires the franchisee to agree to jurisdiction or venue, in a forum outside of North Dakota is also deleted.
For Crowne Plaza franchises in Rhode Island, the Rhode Island Franchise Investment Act stipulates that any provision in a franchise agreement restricting jurisdiction or venue to a forum outside of Rhode Island, or requiring the application of the laws of another state, is void with respect to a claim otherwise enforceable under that Act. This also applies to the Guaranty.
Prospective franchisees should carefully review the specific amendment applicable to their state of operation to understand where legal actions or claims can be pursued, as the standard agreement's venue provision may not be enforceable in all locations. It is important to consult with a legal professional to fully understand their rights and obligations under the franchise agreement and any applicable state laws.