Where must any legal action arising out of the Even Hotels Hotel 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, the agreement stipulates that any legal action, suit, or proceeding arising from the Hotel Agreement must be brought exclusively in the state courts located in Fulton County, Georgia. This clause specifies that all parties involved irrevocably agree to submit to the jurisdiction of these courts. This requirement applies generally and unconditionally to any legal actions initiated by or against any party.
This "governing law and venue" provision is a standard clause in franchise agreements. It means that franchisees may have to bear the expense and inconvenience of traveling to Georgia for legal proceedings, regardless of where their Even Hotels franchise is located. This can create a significant financial burden for franchisees, as they may need to hire local counsel in Georgia and cover travel costs for themselves and their witnesses.
However, the FDD also includes an amendment for franchisees in Maryland. For Maryland residents or franchises operated in Maryland, the provision in the License that permits all suits to be filed in Georgia is deleted. This suggests that franchisees operating in different states may have different legal venue options, so prospective franchisees should carefully review any state-specific amendments to the franchise agreement to understand their rights and obligations.