Who determines how the costs and expenses of arbitration will be allocated and paid for Delta Hotels By Marriott?

According to the 2025 Delta Hotels By Marriott Franchise Disclosure Document, the arbitral tribunal will determine how the costs and expenses of arbitration are allocated and paid by the parties involved. This means that neither Delta Hotels By Marriott nor the franchisee has unilateral control over these costs; instead, an independent arbitrator will make the decision.

For a prospective Delta Hotels By Marriott franchisee, this implies that the costs of arbitration can vary significantly depending on the arbitrator's decision. Factors influencing this decision could include the complexity of the case, the resources required, and the degree to which each party is successful in the arbitration. Franchisees should be prepared for the possibility of bearing a portion, or potentially all, of the arbitration costs.

This arrangement is fairly standard in franchise agreements, as it provides a neutral mechanism for resolving disputes. However, it introduces uncertainty regarding potential costs. Franchisees should consider this when evaluating the financial risks associated with the Delta Hotels By Marriott franchise and factor in potential arbitration expenses into their financial planning. It would be prudent to seek legal counsel to understand the implications of this clause and to discuss strategies for managing potential arbitration costs.