For Embassy Suites franchise agreements, what is the designated venue for arbitration proceedings?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
16.2.2 The Parties irrevocably agree that all disputes, controversies or claims arising out of in connection with this Agreement, or the breach, termination or invalidity of this Agreement will be finally settled by arbitration conducted by the American Arbitration Association, JAMS or similar arbitral body (at Franchisor's election) in accordance with the Federal Rules of Civil Procedure by one (1) or more arbitrators appointed in accordance with said rules. To the extent the Federal Rules of Civil Procedure do not govern certain procedures or requirements relating to the arbitration, the parties will look to the applicable rules of the applicable arbitral body. The venue of the arbitration will be Fairfax County, Virginia, and the seat of the arbitration will be New York, New York. Arbitration proceedings will be conducted in English. You consent to personal jurisdiction and venue this jurisdiction and waive, and agree not to assert, move or otherwise claim that the venue in this jurisdiction is for any reason improper, inconvenient, prejudicial or otherwise inappropriate. Notwithstanding the foregoing, the parties agree that actions initiated or maintained by us for temporary remedies, injunctive or other equitable relief may be brought in any competent court or other governmental agency or authority. Notwithstanding such election, the choice of substantive law made by the parties pursuant to this Subsection 16.2 shall continue to apply. Issues relating to the conduct of any arbitration and enforcement of any award shall be governed by the Federal Arbitration Act, 9 U.S.C. §§1-16. An award of arbitration may be confirmed in a court of competent jurisdiction.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the venue for arbitration will be Fairfax County, Virginia, while the seat of the arbitration will be New York, New York. The arbitration will be conducted by the American Arbitration Association, JAMS, or a similar arbitral body, selected by Embassy Suites. The proceedings will be conducted in English, and the parties consent to personal jurisdiction and venue in this jurisdiction. Franchisees also waive their right to claim that the venue is improper or inappropriate.
This means that if a dispute arises that leads to arbitration, franchisees may be required to travel to Fairfax County, Virginia, for the proceedings, even if their Embassy Suites hotel is located elsewhere. The arbitration will be governed by the Federal Rules of Civil Procedure, and any issues relating to the arbitration's conduct and award enforcement will be subject to the Federal Arbitration Act.
However, Embassy Suites retains the right to initiate actions for temporary remedies, injunctive, or other equitable relief in any competent court or governmental agency, regardless of the arbitration agreement. This clause ensures that Embassy Suites can seek immediate legal intervention if necessary, without being bound by the arbitration requirement.
It's important for prospective franchisees to understand these terms, as they dictate the location and process for resolving disputes with Embassy Suites. Franchisees should consider the potential costs and inconveniences associated with arbitrating in Fairfax County, Virginia, and consult with legal counsel to fully understand their rights and obligations under the franchise agreement.