In Michigan, can Embassy Suites require arbitration or litigation to be conducted outside of Michigan?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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, if a provision in the franchise documents requires arbitration or litigation to be conducted outside of Michigan, that provision is void and cannot be enforced against the franchisee. However, the Michigan addendum does not prevent an Embassy Suites franchisee from agreeing to conduct arbitration outside of Michigan at the time the arbitration takes place.
This stipulation protects Michigan-based Embassy Suites franchisees from being forced into costly and inconvenient legal proceedings in other states. It ensures that initial legal disputes can be resolved within Michigan, providing a more accessible and potentially less expensive legal process.
However, it's important to note that this protection only applies to the initial agreement. An Embassy Suites franchisee can later agree to move the arbitration to another location if they find it beneficial at the time of the dispute. This provides flexibility while safeguarding the franchisee's initial rights.