Which state's laws govern the Crowne Plaza Next-Gen Payments Solution Agreement?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement and the rights and obligations of the Parties under this Agreement shall be governed by and construed in accordance with the Laws of the State of Georgia, without giving effect to the principles thereof relating to the conflicts of Laws.
Each Party irrevocably agrees that any legal action, suit or proceeding brought by it in any way arising out of this Agreement must be brought solely and exclusively in the state courts located in the County of Fulton, State of Georgia, and irrevocably accepts and submits to the sole and exclusive jurisdiction of each of the aforesaid courts in personam, generally and unconditionally with respect to any action, suit or proceeding brought by it or against it by the other Party.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, the Next-Gen Payments Solution Agreement is governed by the laws of the State of Georgia. This means that the agreement will be interpreted and enforced according to Georgia law, without regard to its conflict of laws principles. Furthermore, any legal action related to the agreement must be brought in the state courts located in Fulton County, Georgia, and both parties irrevocably submit to the jurisdiction of those courts.
This clause is important for prospective Crowne Plaza franchisees because it dictates where and how any legal disputes related to the Next-Gen Payments Solution Agreement will be resolved. Franchisees located outside of Georgia would be required to travel to Georgia for any court proceedings. This could increase the cost of resolving disputes due to travel, local counsel fees, and other related expenses.
However, the FDD also includes amendments for franchisees in Maryland and North Dakota. For Crowne Plaza franchises issued in the State of Maryland, the provision that permits all suits to be filed in Georgia is deleted for residents of Maryland and/or franchises to be operated in Maryland. For Crowne Plaza franchises issued in the State of North Dakota, the laws of the State of North Dakota supersede any provisions of the License, or Georgia law, if such provisions are in conflict with such North Dakota laws.