Under the Springhill Suites By Marriott FDD, what is considered an 'Employment Based Claim'?

According to the 2025 Springhill Suites By Marriott Franchise Disclosure Document, an "Employment Based Claim" is defined as any claim made by or on behalf of a present or former service provider (or their beneficiary) that relates to employment matters or is based on an employer-employee relationship. This definition specifically includes, but is not limited to, workers' compensation claims.

For a prospective Springhill Suites By Marriott franchisee, this definition is crucial because it clarifies the scope of potential liabilities and indemnification responsibilities related to service providers working at the hotel. The agreement outlines that Marriott may provide service providers to the franchisee, and understanding what constitutes an employment-based claim is essential for managing risk.

The franchisee is responsible for indemnifying Marriott against losses arising from employment-based claims related to acts or omissions during the term of the agreement. Conversely, Marriott is responsible for employment-based claims arising from acts or omissions outside the term of the agreement. This division of responsibility highlights the importance of carefully managing the service provider's activities and ensuring compliance with employment laws during their engagement at the Springhill Suites By Marriott hotel.

This definition ensures both parties understand their obligations regarding potential employment-related issues, which is a common practice in franchise agreements involving shared services or personnel. Franchisees should consult with legal counsel to fully understand the implications of these indemnification clauses and to implement appropriate risk management strategies.