Where will arbitration take place for disputes related to a Sonesta Select Sonesta Essential franchise?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN | SUMMARY |
|---|---|---|
| FRANCHISE AGREEMENT | ||
| s. Modification of | Section 17.K | No modifications of the Franchise Agreement except by written agreement, |
| the agreement | except that we may modify the Brand Manual and Brand Standards. | |
| t. Integration / merger clause | Section 17.N | Only the terms of Franchise Agreement, including its attachments and the Brand Standards, are binding (subject to state law). Any representations or promises outside of this Disclosure Document and the Franchise Agreement may not be enforceable. |
| u. Dispute | Section 17.F | We and you must arbitrate all disputes (except for claims to collect amounts |
| resolution by | owed) at a location within 50 miles of our or, as applicable, our successor’s | |
| arbitration or | or assign’s then-current principal place of business (currently, Newton, | |
| mediation | Massachusetts) (subject to state law). |
Source: Item 17 — **RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 70–75)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, disputes between the franchisor and franchisee will be settled through arbitration. The arbitration will occur within 50 miles of Sonesta Select Sonesta Essential's principal place of business, which is currently located in Newton, Massachusetts. This applies to all disputes except for claims related to collecting amounts owed to Sonesta Select Sonesta Essential.
This means that if a franchisee has a disagreement with Sonesta Select Sonesta Essential that cannot be resolved informally, the franchisee will likely need to travel to the Newton, Massachusetts, area for arbitration proceedings. This could involve expenses for travel, accommodation, and legal representation in that location. Franchisees should factor these potential costs into their financial planning.
It is important to note that this arbitration clause is subject to state law, which may provide additional protections or requirements for franchisees. Prospective franchisees should consult with an attorney to understand the full implications of the arbitration clause and how it may affect their rights and obligations under the Franchise Agreement.