Can a Springhill Suites By Marriott arbitration proceeding be conducted on a class-wide basis?

According to Springhill Suites By Marriott's 2025 Franchise Disclosure Document, any arbitration proceeding under the Franchise Agreement will be conducted on an individual basis, explicitly not on a class-wide basis. This means that a franchisee cannot join with other franchisees to bring a single, collective arbitration claim against Springhill Suites By Marriott. Each franchisee must pursue their claims individually.

However, Springhill Suites By Marriott retains the right to join certain related parties in any arbitration proceeding. Specifically, Springhill Suites By Marriott may include any management company operating the hotel, any owner under an owner agreement related to the hotel, and any guarantor of obligations related to the hotel in the arbitration. This clause ensures Springhill Suites By Marriott can consolidate related disputes into a single proceeding when it is the franchisor's interest.

The FDD specifies that this restriction on class-wide arbitration is a condition of the franchise agreement. This is a fairly common practice in franchising, as franchisors often prefer to handle disputes on an individual basis to avoid the potential for large, class-action lawsuits or arbitrations. Prospective franchisees should consider this when evaluating the dispute resolution process outlined in the franchise agreement.