In what court must litigation be brought for Sonesta Select Sonesta Essential, subject to the arbitration requirement?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN | SUMMARY |
|---|---|---|
| v. Choice of forum | Sections 17.H and 17.J | Subject to the arbitration requirement, litigation must be brought in the court nearest to our or, as applicable, our successor’s or assign’s then current principal place of business (currently, Newton, Massachusetts) (subject to state law). However, we may seek injunctive relief in any court of competent jurisdiction. |
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, subject to certain state laws, any litigation, after fulfilling the arbitration requirement, must be initiated in the court nearest to Sonesta Select Sonesta Essential's principal place of business. Currently, their principal place of business is in Newton, Massachusetts. However, Sonesta Select Sonesta Essential can seek injunctive relief in any court that has the authority to grant such relief.
For a prospective franchisee, this means that if a dispute with Sonesta Select Sonesta Essential cannot be resolved through arbitration and proceeds to litigation, the franchisee will likely have to litigate in a court near Newton, Massachusetts. This could involve significant travel and legal expenses for a franchisee located far from Massachusetts.
It is important to note the exception that Sonesta Select Sonesta Essential may seek injunctive relief in any court of competent jurisdiction. This means that Sonesta Select Sonesta Essential could potentially bring legal action against a franchisee in a court closer to the franchisee's location if they are seeking an immediate court order, such as an injunction, to stop the franchisee from taking certain actions that could harm the brand. Franchisees should be aware of these forum selection and dispute resolution procedures as they can significantly impact the cost and convenience of resolving disputes.