What relief can the arbitral tribunal award in a Delta Hotels By Marriott arbitration?
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).
The costs and expenses of arbitration will be allocated and paid by the parties as determined by the arbitral tribunal.
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 arbitral tribunal has broad authority to determine appropriate relief. This includes the ability to award money damages, interest on unpaid amounts, specific performance, and legal fees and costs, provided such awards are consistent with the agreement. However, the tribunal is specifically prohibited from awarding punitive, consequential, or exemplary damages, except in cases related to the misuse of Delta Hotels By Marriott's intellectual property. The costs and expenses of the arbitration will be allocated between the parties as determined by the arbitral tribunal.
This means that a Delta Hotels By Marriott franchisee involved in an arbitration proceeding could potentially recover financial losses, compel specific actions from the other party, and have their legal expenses covered, but they generally cannot seek additional damages intended to punish the other party. An exception exists if the dispute involves misuse of Delta Hotels By Marriott's trademarks or other intellectual property, in which case punitive damages might be considered.
It is important to note that the arbitral tribunal cannot amend or modify the terms of the franchise agreement itself. The decision made by the arbitral tribunal is final and binding on all parties involved and can be enforced in any court with jurisdiction. This underscores the importance of carefully reviewing the franchise agreement and understanding the potential implications of the arbitration process for Delta Hotels By Marriott.