factual

Can the arbitral tribunal amend or modify the terms of the Springhill Suites By Marriott Guaranty?

Springhill_Suites_By_Marriott Franchise · 2025 FDD

Answer from 2025 FDD Document

The decision of the arbitral tribunal will be final and binding on the parties and will be enforceable in any courts having jurisdiction.

The arbitral tribunal will have no authority to amend or modify the terms of this Guaranty.

The arbitral tribunal will have the right to award or include in its award any relief it deems proper, including money damages and interest on unpaid amounts, specific performance and legal fees and costs in accordance with this Guaranty; however, the arbitral tribunal may not award punitive, consequential or exemplary damages (except for those related to misuse of Franchisor's Intellectual Property).

The costs and expenses of arbitration will be allocated and paid by the parties as determined by the arbitral tribunal.

Source: Item 3 — Obligations of Guarantor. (FDD pages 257–265)

What This Means (2025 FDD)

According to the 2025 Springhill Suites By Marriott Franchise Disclosure Document, the arbitral tribunal does not have the authority to amend or modify the terms of the Guaranty. However, the arbitral tribunal's decision will be final and binding on all parties involved and can be enforced in any court with jurisdiction. The tribunal can also award relief, including money damages, interest on unpaid amounts, specific performance, and legal fees and costs, in accordance with the Guaranty.

It is important to note that the arbitral tribunal cannot award punitive, consequential, or exemplary damages, except for those related to the misuse of Springhill Suites By Marriott's intellectual property. The costs and expenses of arbitration will be allocated and paid by the parties as determined by the arbitral tribunal. Any arbitration proceeding will be conducted on an individual basis and will not be consolidated with other arbitration proceedings, except that Springhill Suites By Marriott may join any current or former guarantor of obligations related to the hotel in the proceeding.

This means that while franchisees and Springhill Suites By Marriott agree to resolve disputes through arbitration, the arbitrator's power is limited to interpreting the existing agreement. They cannot rewrite the terms of the Guaranty, which provides a level of certainty for both parties. However, the arbitrator does have broad authority to determine appropriate remedies within the bounds of the existing agreement, including financial compensation and legal costs.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.