Who pays if Marriott terminates?

We just released our latest guide for Marriott franchisees about what to watch out for when negotiating your franchise agreement. You can find it for free here.

Marriott has included liquidated damages clauses in at least one of its franchise disclosure documents (“FDD”) requiring a franchisee to pay liquidated damages even if the franchisor is the one to initiate termination. A similar clause may appear in your franchise agreement.

The latest guide offers some ideas about how to make these clauses more fair.