What specific court is preferred for actions brought pursuant to the Embassy Suites franchise agreement?

According to Embassy Suites's 2025 Franchise Disclosure Document, the parties agree that any action brought pursuant to the franchise agreement or the relationship between them must be brought in the U.S. District Court for the Eastern District of Virginia, in Alexandria, Virginia. However, if that court lacks subject matter jurisdiction, then the action may be brought in a court of competent jurisdiction whose jurisdiction includes either Fairfax County, Virginia or New York, New York, or in the county and state where the Hotel is located. The franchisee consents to personal jurisdiction and venue in each of these jurisdictions. The franchisee also waives, and agrees not to assert, move or otherwise claim that the venue in any of these jurisdictions is for any reason improper, inconvenient, prejudicial or otherwise inappropriate.

This means that as a prospective Embassy Suites franchisee, you are agreeing to litigate disputes with the franchisor in a specific set of locations, potentially far from your primary place of business or residence. This could increase your legal costs due to travel and the need to hire local counsel. It is important to understand the implications of this clause and consider whether the chosen venues are convenient or create a disadvantage for you.

It is relatively common in franchising for the franchise agreement to specify a particular jurisdiction and venue for dispute resolution. This allows the franchisor to manage legal proceedings more efficiently. However, franchisees should carefully evaluate these clauses and understand their rights and obligations under the agreement.