Where will arbitration proceedings be conducted in the event of a dispute with Delta Hotels By Marriott?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE OR OTHER AGREEMENT | SUMMARY1 |
|---|---|---|
| v. Choice of forum | Sections 24.1.B, 24.1.C, and 24.5 | In any dispute, you waive the right to a jury trial. Arbitration proceedings will be conducted in Baltimore, Maryland. You consent to the non-exclusive jurisdiction of the courts of Maryland for disputes not subject to arbitration.7 |
| w. Choice of law | Section 24.1.A | Maryland law applies.7 |
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 111–120)
What This Means (2025 FDD)
According to Delta Hotels By Marriott's 2025 Franchise Disclosure Document, any arbitration proceedings will be held in Baltimore, Maryland. This is according to Sections 24.1.B, 24.1.C, and 24.5 of the franchise agreement. The FDD also states that franchisees waive the right to a jury trial in any dispute. For disputes that are not subject to arbitration, franchisees consent to the non-exclusive jurisdiction of the courts of Maryland.
This means that if a franchisee has a dispute with Delta Hotels By Marriott that goes to arbitration, the proceedings will take place in Baltimore, Maryland, regardless of where the franchisee's hotel is located. This could involve significant travel expenses and logistical challenges for a franchisee located far from Baltimore. The franchisee also gives up their right to a jury trial, which means a neutral arbitrator will make the decision instead of a jury of their peers.
The choice of forum and law are important considerations for prospective franchisees. It is not uncommon for franchise agreements to specify a particular location for dispute resolution, often the location of the franchisor's headquarters. This can create an advantage for the franchisor, who is likely more familiar with the legal landscape and has easier access to legal resources in that jurisdiction. Franchisees should carefully consider the implications of these provisions and consult with an attorney to understand their rights and obligations.
It is important for potential Delta Hotels By Marriott franchisees to fully understand these legal stipulations before entering into a franchise agreement. Understanding the location and legal framework for dispute resolution is a crucial part of assessing the overall risk and potential costs associated with the franchise.