Are claims to collect amounts owed subject to arbitration for Sonesta Select Sonesta Essential?

According to the 2025 Franchise Disclosure Document, Sonesta Select Sonesta Essential's franchise agreement includes a clause about arbitration; however, it specifies an exception. Specifically, the agreement to arbitrate does not prevent either party from filing a claim in court to collect amounts owed. This means that Sonesta Select Sonesta Essential, or the franchisee, can pursue legal action in court to recover outstanding payments without being bound by the arbitration agreement. This exception is outlined in Section 17.H of the franchise agreement.

This provision offers Sonesta Select Sonesta Essential and its franchisees an option to expedite the recovery of debts through the court system, which may be faster or more effective than arbitration in certain cases. It is a fairly common practice in franchising to allow for court claims for debt collection, as arbitration can sometimes be a slower and more costly process for straightforward payment disputes.

However, any provisions of the agreement pertaining to judicial proceedings are subject to the agreement to arbitrate. This means that while debt collection can be pursued in court, other disputes may still be subject to arbitration. Franchisees should be aware of this clause, as it allows Sonesta Select Sonesta Essential to pursue debt collection in court while potentially requiring other disputes to be resolved through arbitration.