In what language will the arbitration proceedings be conducted for the Embassy Suites By Hilton franchise agreement?
Embassy_Suites_By_Hilton 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 the 2025 Embassy Suites By Hilton Franchise Disclosure Document, any arbitration proceedings related to disputes, controversies, or claims arising from the franchise agreement will be conducted in English. This is explicitly stated in Subsection 16.2.2 of the agreement, which outlines the arbitration process. The venue for arbitration will be Fairfax County, Virginia, and the seat of the arbitration will be New York, New York.
This provision ensures clarity and consistency in the resolution of potential disputes. By specifying English as the language for arbitration, Embassy Suites By Hilton avoids potential misunderstandings or misinterpretations that could arise from using other languages. This is a common practice in franchise agreements, especially for brands operating primarily in English-speaking markets.
For a prospective Embassy Suites By Hilton franchisee, this means that all formal arbitration proceedings will be conducted in a language accessible to both parties, simplifying the process and reducing the need for translation services. However, franchisees operating in regions where English is not the primary language should consider the potential need for legal counsel proficient in both English and local laws to fully understand and navigate the arbitration process if disputes arise.