Where will arbitration proceedings be conducted for disputes related to the Springhill Suites By Marriott franchise?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE OR OTHER AGREEMENT | SUMMARY1 | |
|---|---|---|---|
| q. | Non-competition covenants during the term of the franchise | Sections 8.4.B and 17.5 | You may not use any part of the hotel to divert business to or promote a different business. You or your affiliates may not sell or lease the hotel to, or become, a Competitor, or transfer any interest in you or your affiliates to a Competitor, without our prior approval. (These terms are subject to applicable state law.) |
| r. | Non-competition covenants after the franchise is terminated or expires | Section 21.2 | If the hotel is damaged due to a casualty resulting in a termination of the franchise agreement, and you or your affiliates operate a replacement hotel or other lodging product that is not a Company Brand Hotel at the site during the original term of the franchise, you must pay us liquidated damages. (These terms are subject to applicable state law.) |
| s. | Modification of the agreement | Sections 3.4, 3.7.C, 10.2, and 27.7 | No modifications generally, but the franchise agreement permits modifications to the Program Services Contribution, the Marketing Fund Contribution, and the System, including the Standards, as well as all of the fees listed herein, with the exception of franchise fees. |
| t. | Integration/merger clause | Section 27.6 | Only the terms and conditions of the franchise agreement and related agreements are binding (subject to state law). Any statements, representations, or alleged promises outside of the disclosure document or franchise agreement and related agreements may not be enforceable. |
| u. | Dispute resolution by arbitration or mediation | Section 24.1.B7 | Except for claims relating to indemnification, equitable relief, and enforcement of arbitral awards, all disputes will be resolved by arbitration. |
| v. | Choice of forum | Sections 24.1.B, 24.1.C, and 24.5 | In any dispute, you waive the right to a jury trial. Arbitration proceedings will be conducted in Baltimore, Maryland. You consent to the non-exclusive jurisdiction of the courts of Maryland for disputes not subject to arbitration. 7 |
| w. | Choice of law | Section 24.1.A | Maryland law applies.7 |
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 107–117)
What This Means (2025 FDD)
According to Springhill Suites By Marriott's 2025 Franchise Disclosure Document, arbitration proceedings will be held in Baltimore, Maryland. This means that if a franchisee has a dispute with Springhill Suites By Marriott that cannot be resolved through other means, the franchisee will be required to travel to Baltimore, Maryland to participate in the arbitration.
This requirement could create additional expenses for the franchisee, such as travel and accommodation costs, as well as potentially higher legal fees if the franchisee's attorney is not located in the Baltimore area. It is important to note that this applies to all disputes except for claims relating to indemnification, equitable relief, and enforcement of arbitral awards.
The FDD also states that franchisees waive the right to a jury trial in any dispute. Furthermore, franchisees consent to the non-exclusive jurisdiction of the courts of Maryland for disputes not subject to arbitration. Maryland law governs the franchise agreement.