Does the definition of 'Applicable Law' for Springhill Suites By Marriott include local 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 local laws. The document specifies that "Applicable Law" encompasses 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 that have jurisdiction over the Hotel, Franchisee, any Guarantor, Franchisor in its capacity as licensor, or the matters that are the subject of the Franchise Agreement.
This definition also includes any applicable data protection or privacy laws, and any laws prohibiting unfair, fraudulent, or corrupt business practices, including those related to money laundering or terrorist financing. This means Springhill Suites By Marriott franchisees must adhere to all levels of legal requirements, from national statutes down to local ordinances, impacting hotel operations, data handling, and ethical business conduct.
For a prospective Springhill Suites By Marriott franchisee, this comprehensive definition means they must be aware of and compliant with a wide array of legal requirements at all levels of government. This includes obtaining all necessary permits, certificates, and licenses required to operate the hotel legally, as stated in Section 22.1 of the FDD. Non-compliance can lead to legal repercussions, affecting the franchisee's ability to operate the hotel and maintain the franchise agreement.