For Embassy Suites arbitration actions in Puerto Rico, what is the venue?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement ("FA"), Spa Amendment and HITS Agreement | Summary |
|---|---|---|
| competent jurisdiction in either Fairfax County, Virginia, or New | ||
| York, New York, but we may elect to bring an action against you | ||
| where the hotel is located. | ||
| For Puerto Rico arbitration actions, the venue will be Fairfax | ||
| County, Virginia, and the seat of the arbitration will be New York, | ||
| New York. An arbitration award may be confirmed in any court | ||
| of competent jurisdiction. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 77–87)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the venue for arbitration actions in Puerto Rico will be Fairfax County, Virginia. However, the seat of the arbitration will be New York, New York. The document also states that an arbitration award may be confirmed in any court of competent jurisdiction.
This means that if a dispute arises between an Embassy Suites franchisee in Puerto Rico and the franchisor that proceeds to arbitration, the legal proceedings will take place in Fairfax County, Virginia. While the physical location of the arbitration is in Virginia, the location where the arbitration is officially based is New York, New York.
It is important for prospective franchisees to understand these terms, as they dictate where they may need to travel and engage legal counsel should a dispute arise. Franchise agreements often specify a particular venue for dispute resolution, which may or may not be the franchisee's home state. This clause aims to provide clarity on where legal actions must be initiated and managed, potentially adding to the cost and complexity of resolving disputes for franchisees located far from the designated venue.