Where must any legal action arising out of the Even Hotels agreement be brought?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.10 Governing Law; Sole and Exclusive Venue.
This Agreement and the rights and obligations of the Parties under this Agreement shall be governed by and construed in accordance with the Laws of the State of Georgia, without giving effect to the principles thereof relating to the conflicts of Laws.
Each Party irrevocably agrees that any legal action, suit or proceeding brought by it in any way arising out of this Agreement must be brought solely and exclusively in the state courts located in the County of Fulton, State of Georgia, and irrevocably accepts and submits to the sole and exclusive jurisdiction of each of the aforesaid courts in personam, generally and unconditionally with respect to any action, suit or proceeding brought by it or against it by the other Party.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, any legal action arising out of the franchise agreement must be brought in the state courts located in the County of Fulton, State of Georgia. The agreement explicitly states that each party irrevocably agrees to this venue and submits to the jurisdiction of these courts. This clause dictates the location for resolving disputes related to the franchise agreement.
This requirement means that a franchisee, regardless of their location, must be prepared to litigate any disputes with Even Hotels in Georgia. This could involve significant travel expenses, hiring local counsel in Georgia, and becoming familiar with Georgia state law. Franchisees should consider this when evaluating the franchise opportunity, as it could add considerable cost and complexity to resolving legal issues.
However, there is an exception for franchisees operating in Maryland. For these franchisees, the provision in the license that permits all suits to be filed in Georgia is deleted. This means that Maryland franchisees are not bound by the Georgia venue clause and may have the option to pursue legal action in Maryland or another appropriate jurisdiction. Franchisees should consult with legal counsel to understand their rights and obligations regarding venue in the event of a dispute.