What state's law governs the AT&T agreement for Even Hotels, and where must any legal action be commenced?
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 and the rights and obligations of the parties are governed by and construed in accordance with the laws of the State of Georgia, without regard to its conflict of laws principles.
Any legal action, suit, or proceeding arising out of the agreement must be brought solely and exclusively in the state courts located in the County of Fulton, State of Georgia. Each party irrevocably accepts and submits to the sole and exclusive jurisdiction of these courts, both in personam and unconditionally.
This means that if a franchisee has a dispute related to the agreement, they must pursue legal action in the specified courts in Georgia, and the laws of Georgia will be used to interpret the agreement. This is a standard clause in many franchise agreements, as it provides clarity and predictability regarding the legal framework and venue for resolving disputes. However, franchisees should be aware of the potential costs and inconvenience of litigating in a state that may be different from their own.