What authority does the arbitral tribunal NOT have regarding the Delta Hotels By Marriott agreement?
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 Agreement.
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 Agreement; 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 23 — RECEIPTS (FDD pages 134–251)
What This Means (2025 FDD)
According to the 2025 FDD, the arbitral tribunal resolving disputes related to a Delta Hotels By Marriott franchise agreement does not have the authority to change the terms of the agreement. The arbitral tribunal's decision is final and binding, and enforceable in courts with jurisdiction. The tribunal can award relief, including monetary damages, interest on unpaid amounts, specific performance, and legal fees and costs, but cannot award punitive, consequential, or exemplary damages, except those related to misuse of Delta Hotels By Marriott's intellectual property.
This limitation on the tribunal's authority ensures that the fundamental terms of the franchise agreement, as negotiated and agreed upon by both Delta Hotels By Marriott and the franchisee, remain intact throughout the dispute resolution process. This protects both parties from potential overreach by the arbitral tribunal and maintains the integrity of the contractual relationship.
For a prospective Delta Hotels By Marriott franchisee, this means that while arbitration can address disputes, the core agreement cannot be altered by the arbitrator. Franchisees should be aware that the arbitrator is empowered to make decisions on specific issues and provide remedies, but not to rewrite the original contract. This provides a level of certainty and predictability in the event of a dispute, as the foundational terms of the franchise agreement will remain unchanged.