Where must disputes with Sonesta Select Sonesta Essential be arbitrated, and what is the exception to this rule?
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). | |
| 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 20 — **OUTLETS AND FRANCHISEE INFORMATION (FDD pages 75–84)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, disputes between the franchisee and franchisor must be arbitrated. Specifically, all disputes must be arbitrated at a location within 50 miles of Sonesta Select Sonesta Essential's principal place of business. Currently, their principal place of business is in Newton, Massachusetts. This arbitration requirement is subject to state law.
However, there is an exception to this arbitration rule. Sonesta Select Sonesta Essential is not required to arbitrate claims to collect amounts owed by the franchisee.
Additionally, the FDD states that litigation, subject to the arbitration requirement, must occur in the court nearest to Sonesta Select Sonesta Essential's principal place of business, which is currently Newton, Massachusetts. However, Sonesta Select Sonesta Essential may seek injunctive relief in any court that has the authority to grant it.