Can the arbitral tribunal amend or modify the terms of the Guaranty for Delta Hotels By Marriott?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
The decision of the arbitral tribunal will be final and binding on the parties and will be enforceable in any courts having jurisdiction.
The arbitral tribunal will have no authority to amend or modify the terms of this Guaranty.
The arbitral tribunal will have the right to award or include in its award any relief it deems proper, including money damages and interest on unpaid amounts, specific performance and legal fees and costs in accordance with this Guaranty; however, the arbitral tribunal may not award punitive, consequential or exemplary damages (except for those related to misuse of Franchisor's Intellectual Property).
Source: Item 3 — Obligations of Guarantor**. (FDD pages 251–259)
What This Means (2025 FDD)
According to the 2025 FDD, the arbitral tribunal does not have the authority to amend or modify the terms of the Guaranty for Delta Hotels By Marriott. The decision of the arbitral tribunal will be final and binding on the parties and enforceable in any court having jurisdiction.
While the arbitral tribunal can award relief it deems proper, including money damages, interest on unpaid amounts, specific performance, and legal fees and costs in accordance with the Guaranty, it is specifically prohibited from amending or modifying the terms of the Guaranty itself. The arbitral tribunal also cannot award punitive, consequential, or exemplary damages, except for those related to misuse of Delta Hotels By Marriott's Intellectual Property.
This means that any disputes arising under the Guaranty will be resolved through arbitration, but the arbitrator's power is limited to interpreting and enforcing the existing terms of the Guaranty, not changing them. This provides a level of certainty for both Delta Hotels By Marriott and the guarantor, as the fundamental terms of the agreement cannot be altered by the arbitrator.