Does the Embassy Suites franchise agreement require arbitration or litigation to be conducted outside of Michigan?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
THE STATE OF MICHIGAN PROHIBITS CERTAIN UNFAIR PROVISIONS THAT ARE SOMETIMES IN FRANCHISE DOCUMENTS. IF ANY OF THE FOLLOWING PROVISIONS ARE IN THESE FRANCHISE DOCUMENTS, THE PROVISIONS ARE VOID AND CANNOT BE ENFORCED AGAINST YOU.
- (f) A provision requiring that arbitration or litigation be conducted outside the State of Michigan. This shall not preclude the franchisee from entering into an agreement, at the time of arbitration, to conduct arbitration at a location outside the state of Michigan.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the Michigan Addendum explicitly addresses provisions within franchise agreements that might compel arbitration or litigation to occur outside the state of Michigan. Specifically, the addendum states that any provision requiring arbitration or litigation to be conducted outside of Michigan is void and unenforceable against the franchisee.
This protection ensures that Embassy Suites franchisees in Michigan are not forced to bear the additional costs and logistical challenges of resolving disputes in a different state. It allows them to keep legal proceedings within Michigan, where they are likely to have established business and legal relationships.
However, the FDD also clarifies that this prohibition does not prevent an Embassy Suites franchisee from voluntarily agreeing to conduct arbitration outside of Michigan at the time the arbitration is initiated. This provides flexibility for franchisees who may find it beneficial to resolve a specific dispute in another location, as long as the agreement is made at the time of arbitration and not as a pre-condition in the franchise agreement.