Where will arbitration proceedings be conducted for disputes related to the Delta Hotels By Marriott Guaranty?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
B. Arbitration.
-
Except as otherwise agreed in this Guaranty and for Claims for indemnification under Section 14 of the Agreement or actions for injunctive or other equitable relief under Section 24.2 of the Agreement, any disagreement, controversy, or Claim relating to or arising out of this Guaranty, the relationship created by this Guaranty, or the enforceability of this Guaranty, including any question regarding its existence, validity, legality or termination, and any claim regarding a breach or enforcement of this Guaranty (each, a "Dispute"), will be referred to, and finally settled by, arbitration under and in accordance with the Commercial Arbitration Rules of the American Arbitration Association (or any similar successor rules).
The arbitrator(s) will be appointed in accordance with such rules.
The number of arbitrators will be one, unless the parties agree otherwise in accordance with such rules.
The place where arbitration proceedings will be conducted is Baltimore, Maryland.
The party bringing the arbitration will submit the following together with any demand or filing required by the American Arbitration Association: (1) a full and specific description of the claim under this Guaranty including identifying the specific provisions that the other party has breached, (2) documentary evidence of the facts alleged by the complaining party, and (3) a declaration under penalty of perjury that all facts stated in the claim and documentation are true and correct and do not fail to state facts known to the complaining party that are material to the determination of the dispute.
The decision of the arbitral tribunal will be final and binding on the parties and will be enforceable in any courts having jurisdiction.
Source: Item 3 — Obligations of Guarantor**. (FDD pages 251–259)
What This Means (2025 FDD)
According to the 2025 Delta Hotels By Marriott Franchise Disclosure Document, arbitration proceedings for disputes related to the Guaranty will be conducted in Baltimore, Maryland. This applies to any disagreement, controversy, or claim relating to or arising out of the Guaranty, the relationship it creates, or its enforceability. This includes questions about the Guaranty's existence, validity, legality, or termination, as well as claims regarding a breach or enforcement of the Guaranty.
This means that if a Delta Hotels By Marriott franchisee has a dispute with the franchisor related to the Guaranty (with the exceptions of claims for indemnification or actions for injunctive or other equitable relief), the arbitration will take place in Baltimore, Maryland, regardless of where the franchisee's hotel is located. This could involve travel and associated costs for the franchisee to attend the proceedings.
It is important to note that the arbitration will be conducted under the Commercial Arbitration Rules of the American Arbitration Association. The decision made by the arbitrator(s) will be final, binding, and enforceable in any court with jurisdiction. The party initiating the arbitration must provide a detailed claim description, documentary evidence, and a declaration under penalty of perjury confirming the truthfulness of the claim.