What is the process for dispute resolution between Company and Customer regarding the Crowne Plaza agreement?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Should there be a dispute between Company and Customer relating in any way to the Agreement, the breach of the Agreement, or the business relationship of the parties, the parties agree that they will make a good faith effort to settle the dispute in an amicable manner.
If the parties are unable to settle the dispute through direct discussions, at that time they will attempt to settle the dispute by mediation administered by the American Arbitration Association (the "AAA") as a condition precedent to either party's resort to litigation or other formal, binding means of dispute resolution.
The prevailing party will be entitled to recover its reasonable attorneys' fees and other costs and expenses of litigation or other formal means of dispute resolution.
If litigation is pursued, the exclusive venue for such litigation will be in the federal or state courts located in Atlanta, GA, and the parties agree to submit to the personal jurisdiction of the courts in the State of Georgia.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, disputes between the company and a customer related to the agreement will initially involve a good faith effort to settle the dispute amicably through direct discussions. If these discussions are unsuccessful, the parties are then required to attempt to settle the dispute through mediation administered by the American Arbitration Association (AAA). This mediation is a condition that must be met before either party can resort to litigation or other formal, binding means of dispute resolution.
If litigation is pursued, the FDD specifies that the exclusive venue for such litigation will be in the federal or state courts located in Atlanta, GA. Both parties agree to submit to the personal jurisdiction of the courts in the State of Georgia. The FDD also states that the prevailing party in any litigation or formal dispute resolution will be entitled to recover their reasonable attorneys' fees and other associated costs and expenses.
This dispute resolution process is fairly standard in franchise agreements, emphasizing initial attempts at amicable settlement and mediation before resorting to litigation. The requirement to mediate through the AAA provides a structured and neutral environment for dispute resolution. However, franchisees should be aware that the agreement specifies Georgia as the exclusive venue for litigation, which may require them to incur significant travel and legal expenses if a dispute arises and cannot be resolved through mediation. Franchisees should consult with legal counsel to fully understand the implications of these provisions.