What does 'Applicable Law' encompass in the context of the Delta Hotels By Marriott Franchise Agreement?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
"Applicable Law" means applicable national, federal, regional, state or local laws, codes, rules, ordinances, regulations, or other enactments, orders or judgments of any governmental, quasi-governmental or judicial authority, or administrative agency having jurisdiction over the Hotel, Franchisee, any Guarantor, Franchisor in its capacity as licensor under this Agreement or any of the Marriott Agreements, or the matters that are the subject of this Agreement, including any applicable data protection or privacy laws or any of the above that prohibit unfair, fraudulent or corrupt business practices and related activities, including any such actions or inactions that would constitute a violation of money laundering or terrorist financing laws and regulations.
Source: Item 23 — RECEIPTS (FDD pages 134–251)
What This Means (2025 FDD)
According to the 2025 Delta Hotels By Marriott Franchise Disclosure Document, "Applicable Law" is defined broadly. It includes all relevant national, federal, regional, state, and local laws, codes, rules, ordinances, and regulations. This extends to any other enactments, orders, or judgments from governmental, quasi-governmental, or judicial authorities, as well as administrative agencies that have jurisdiction over the Delta Hotels By Marriott hotel, the franchisee, any guarantor, or Delta Hotels By Marriott in its role as the licensor.
This definition also encompasses any of the Marriott Agreements, or the matters that are the subject of the agreement. It specifically includes data protection and privacy laws, as well as laws prohibiting unfair, fraudulent, or corrupt business practices. This also extends to activities that could be construed as violations of money laundering or terrorist financing laws and regulations.
For a prospective Delta Hotels By Marriott franchisee, this means they must ensure full compliance with a wide array of legal requirements at all levels. This includes not only typical business regulations but also specific hospitality industry laws, data privacy mandates, and financial regulations related to ethical business conduct. Failing to comply with Applicable Law could result in penalties, legal actions, or even termination of the franchise agreement.