Under what state's law will the Guaranty for Delta Hotels By Marriott be construed and governed?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Governing Law. This Guaranty will be construed under and governed by Maryland law, which law will prevail if there is any conflict of law.
Source: Item 3 — Obligations of Guarantor**. (FDD pages 251–259)
What This Means (2025 FDD)
According to the 2025 FDD, the Guaranty for Delta Hotels By Marriott will be construed and governed by Maryland law. The FDD specifies that Maryland law will prevail in the event of any conflict of law. This means that any legal disputes or interpretations regarding the Guaranty will be subject to the laws of Maryland, regardless of where the franchisee or guarantor is located.
This is a standard practice in franchising, where the franchisor typically designates a specific state's law to govern the franchise agreement and related documents to ensure consistency and predictability in legal matters. For a prospective Delta Hotels By Marriott franchisee, this means that they should familiarize themselves with Maryland law, particularly as it relates to contract law and guarantees, to fully understand their rights and obligations under the Guaranty.
Furthermore, the FDD also mentions that any disputes arising from the Guaranty may be subject to arbitration, which will be conducted in Baltimore, Maryland. This reinforces the importance of understanding Maryland law, as the arbitration proceedings will likely be governed by it. Franchisees should consult with legal counsel to assess the implications of this governing law and arbitration clause.