Where must disputes be resolved through arbitration or mediation for a Sonesta Select Sonesta Essential franchise, and what is the exception?
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 must be resolved through arbitration or mediation at a location within 50 miles of Sonesta Select Sonesta Essential's principal place of business, which is currently in Newton, Massachusetts. This applies to all disputes between Sonesta Select Sonesta Essential and the franchisee, and is subject to state law.
The exception to this arbitration or mediation requirement is for claims to collect amounts owed to Sonesta Select Sonesta Essential. In these cases, Sonesta Select Sonesta Essential is not required to go through arbitration or mediation and can pursue other legal avenues to recover the debt.
For litigation, the FDD states that, subject to the arbitration requirement, litigation must be brought 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 of competent jurisdiction.