For an Even Hotels franchise in North Dakota, who decides the site of any arbitration?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything to the contrary set forth in the above License Agreement ("License"), the following provisions shall supersede and apply to each License for an Even Hotel issued in the State of North Dakota:
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- The laws of the State of North Dakota supersede any provisions of the License, or Georgia law, if such provisions are in conflict with such North Dakota laws.
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- Liquidated damages and termination penalty provisions are deleted from the License Agreement to the extent they are prohibited by the laws of the State of North Dakota.
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- Section 13.I of the License is amended to include the following: "The general release language contained in the License shall not relieve IHG or any other person, directly or indirectly, from liability imposed by the laws concerning franchising of the State of North Dakota."
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- In accordance with the provision under the U.S. Bankruptcy Code (11 U.S.C.A. Sec. 101 et seq.), paragraphs 11.C(1)(b) and (d) of the License shall be amended to include the following language: "Enforceability of this provision is a matter governed by the U.S. Bankruptcy Code and enforceability or nonenforceability is subject to that law and rulings of a court of competent jurisdiction."
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- Any provision in the License which designates jurisdiction or venue or requires the Licensee to agree to jurisdiction or venue, in a forum outside of North Dakota, is deleted from Licenses issued in the State of North Dakota. The site of any arbitration will be agreeable to all parties.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the site of any arbitration for a franchise in North Dakota will be determined by agreement of all parties involved. This amendment to the standard Even Hotels license agreement ensures that North Dakota franchisees are not forced into arbitration venues outside of their state, which could be a significant advantage. This change is specifically implemented to comply with North Dakota state laws, which take precedence over any conflicting provisions in the standard license agreement or Georgia law, which is what the standard agreement uses.
This provision offers a layer of protection for Even Hotels franchisees in North Dakota, ensuring that they have a say in where any potential arbitration takes place. It prevents the franchisor from unilaterally imposing a distant or inconvenient location for dispute resolution. This can save the franchisee time and money, as it reduces travel expenses and potentially allows them to use local legal representation.
It's important for prospective Even Hotels franchisees in North Dakota to understand that this amendment modifies the standard franchise agreement. Franchisees should carefully review the entire agreement and all addenda to fully understand their rights and obligations under North Dakota law. This ensures that the franchisee is not at a disadvantage during any legal proceedings with the franchisor.