Under which state's law will the Delta Hotels By Marriott Agreement be construed?
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 FDD, the franchise agreement will be construed under and governed by Maryland law. Specifically, the agreement takes effect upon acceptance and execution by Delta Hotels By Marriott in Maryland. The FDD states that Maryland law will prevail if there is any conflict of law.
This means that if there are disputes regarding the interpretation or enforcement of the franchise agreement, Maryland law will be used to resolve the issue. This is a standard clause in franchise agreements, as it provides clarity and predictability regarding the legal framework that will govern the relationship between the franchisor and franchisee.
However, certain states like California, Illinois, and North Dakota have specific provisions in their franchise laws that may override the choice of law provision in the Delta Hotels By Marriott franchise agreement. For example, the FDD notes that California law will control if the franchise agreement contains a provision inconsistent with California law, and Illinois law will govern to the extent that Maryland law conflicts with the Illinois Franchise Disclosure Act. Similarly, North Dakota does not allow franchise agreements to specify that claims arising under North Dakota franchise law will be governed by the laws of another state. Therefore, prospective franchisees should be aware of these state-specific exceptions and consult with legal counsel to understand how they may impact their rights and obligations under the franchise agreement.