Does the definition of 'Applicable Law' for Springhill Suites By Marriott include federal laws?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
"Applicable Law" means applicable national, federal, regional, state or local laws, codes, rules, ordinances, regulations, or other enactments, orders or judgments of any governmental, quasi-governmental or judicial authority, or administrative agency having jurisdiction over the Hotel, Franchisee, any Guarantor, Franchisor in its capacity as licensor under this Agreement or any of the Marriott Agreements, or the matters that are the subject of this Agreement, including any applicable data protection or privacy laws or any of the above that prohibit unfair, fraudulent or corrupt business practices and related activities, including any such actions or inactions that would constitute a violation of money laundering or terrorist financing laws and regulations.
Source: Item 16 — FINANCING OF THE HOTEL (FDD pages 206–257)
What This Means (2025 FDD)
According to Springhill Suites By Marriott's 2025 Franchise Disclosure Document, the definition of "Applicable Law" does include federal laws. Specifically, it encompasses applicable national, federal, regional, state, or local laws, codes, rules, ordinances, regulations, or other enactments. This broad definition extends to orders or judgments from governmental, quasi-governmental, or judicial authorities, as well as administrative agencies with jurisdiction over the Hotel, Franchisee, any Guarantor, Franchisor, or the matters related to the Franchise Agreement.
This definition also includes any applicable data protection or privacy laws, as well as laws prohibiting unfair, fraudulent, or corrupt business practices. It further extends to actions or inactions that could violate money laundering or terrorist financing laws and regulations. This comprehensive scope ensures that Springhill Suites By Marriott franchisees must adhere to a wide array of legal requirements at all levels.
For a prospective franchisee, this means that operating a Springhill Suites By Marriott hotel requires a thorough understanding of and compliance with laws ranging from federal statutes to local ordinances. This includes not only general business laws but also specific regulations related to data protection, privacy, and ethical business conduct. Franchisees must also stay informed about changes in these laws and regulations to ensure ongoing compliance, which may require legal counsel and robust internal compliance programs.