Under what rules will arbitration be settled for Delta Hotels By Marriott?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
12.2 Arbitration.
- A.
Except as otherwise agreed in this Agreement and for Claims for indemnification under Section 14 of the Franchise Agreement or actions for injunctive or other equitable relief under Section 12.4 of this Agreement, any disagreement, controversy, or Claim relating to or arising out of this Agreement, the relationship created by this Agreement, or the enforceability of this Agreement, including any question regarding its existence, validity, legality or termination, and any claim regarding a breach or enforcement of this Agreement (each, a "Dispute"), will be referred to, and finally settled by, arbitration under and in accordance with the Commercial Arbitration Rules of the American Arbitration Association (or any similar successor rules).
The arbitrator(s) will be appointed in accordance with such rules.
The number of arbitrators will be one, unless the parties agree otherwise in accordance with such rules.
The place where arbitration proceedings will be conducted is Baltimore, Maryland.
The party bringing the arbitration will submit the following together with any demand or filing required by the American Arbitration Association: (1) a full and specific description of the claim under this Agreement including identifying the specific provisions that the other party has breached, (2) documentary evidence of the facts alleged by the complaining party, and (3) a declaration under penalty of perjury that all facts stated in the claim and documentation are true and correct and do not fail to state facts known to the complaining party that are material to the determination of the dispute.
- B.
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.
- C.
Any arbitration proceeding under this Agreement will be conducted on an individual (not a class-wide) basis and will not be consolidated with any other arbitration proceedings to which Franchisor is a party, except that Franchisor may join any current or former owner under an owner agreement related to the Hotel in any such proceeding.
Source: Item 11 — FINANCING OF THE HOTEL (FDD pages 259–279)
What This Means (2025 FDD)
According to the 2025 FDD, any disagreement, controversy, or claim relating to or arising out of the Owner Agreement with Delta Hotels By Marriott, or the enforceability of the agreement, will be settled by arbitration. This excludes claims for indemnification or actions for injunctive or other equitable relief. The arbitration will be conducted under the Commercial Arbitration Rules of the American Arbitration Association (or any similar successor rules).
The arbitrator will be appointed in accordance with these rules, and unless the parties agree otherwise, there will be one arbitrator. The location for arbitration proceedings is Baltimore, Maryland. The party initiating the arbitration must submit a detailed claim description, documentary evidence, and a declaration under penalty of perjury confirming the truthfulness of the facts presented.
The decision made by the arbitral tribunal will be final and binding, enforceable in any court with jurisdiction. However, the tribunal cannot amend or modify the terms of the Owner Agreement. They can award relief, including money damages, interest on unpaid amounts, specific performance, and legal fees and costs as per the agreement, but punitive, consequential, or exemplary damages are not allowed, except those related to misuse of Delta Hotels By Marriott's intellectual property. The costs and expenses of arbitration will be allocated as determined by the arbitral tribunal. Arbitration proceedings will be conducted on an individual basis and will not be consolidated with other proceedings, except that Delta Hotels By Marriott may join current or former owners in the proceeding.