factual

In North Dakota, where will any arbitration be held between Delta Hotels By Marriott and the franchisee?

Delta_Hotels_By_Marriott Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Any arbitration will be held at a site mutually agreeable to the franchisor and the franchisee.

Source: Item 11 — FINANCING OF THE HOTEL (FDD pages 259–279)

What This Means (2025 FDD)

According to the 2025 FDD, for Delta Hotels By Marriott franchisees in North Dakota, the location of any arbitration proceedings will be determined by mutual agreement between the franchisor and the franchisee. This means that both parties must agree on a specific site for the arbitration to take place.

This requirement is in place because the North Dakota Securities Commissioner considers it unfair for Delta Hotels By Marriott to require franchisees to consent to the jurisdiction of courts outside of North Dakota. This provision ensures that North Dakota franchisees are not forced to arbitrate disputes in a location that is inconvenient or cost-prohibitive for them.

Prospective Delta Hotels By Marriott franchisees in North Dakota should understand that while the franchise agreement might initially specify a location for arbitration, this provision is superseded by the state-specific amendment. Therefore, they have the right to negotiate a mutually agreeable location for any arbitration proceedings, potentially keeping the proceedings within North Dakota.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.