What law governs the Delta Hotels By Marriott Agreement?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
12.1 Governing Law. This Agreement takes effect on its acceptance and execution by Franchisor in Maryland and will be construed under and governed by Maryland law, which law will prevail if there is any conflict of law.
Source: Item 11 — FINANCING OF THE HOTEL (FDD pages 259–279)
What This Means (2025 FDD)
According to the 2025 Delta Hotels By Marriott Franchise Disclosure Document, the agreement is governed by Maryland law. Specifically, the agreement takes effect upon acceptance and execution by Delta Hotels By Marriott in Maryland. Therefore, Maryland law will be used to construe the agreement, and it will prevail if there is any conflict of law.
This means that any legal disputes or interpretations of the franchise agreement will be subject to Maryland law, regardless of where the franchisee's hotel is located. This is a common practice in franchising, as it provides the franchisor with a consistent legal framework across all franchise locations.
However, the FDD also notes that for franchisees in certain states like California and North Dakota, some provisions, including the application of Maryland law, may not be enforceable due to state-specific franchise laws. Prospective franchisees should consult with legal counsel to understand how these state laws may impact the enforceability of specific clauses in the franchise agreement.