What must a Sonesta Select Sonesta Essential franchisee do when asked to take action in any copyright litigation?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
You must immediately notify us of any apparent infringement of or challenge to your use of any copyrighted materials. We may take any action we think appropriate (including no action), and at our option we may control any litigation or administrative proceeding.
You may not communicate with any other person regarding any such infringement, challenges or claims and only we and our affiliates will have the right to handle disputes
concerning the copyrighted materials. We and our affiliates will take the action we and they consider appropriate with respect to such challenges and claims. You must extend your full cooperation to us and our affiliates in these matters. You must sign any documents we believe are necessary to obtain protection for the copyrighted materials and assign to us any claims you may have related to these matters. Our decision as to the prosecution, defense and settlement of the dispute will be final. All recoveries made as a result of disputes with third parties regarding the copyrighted marks will be for our account. We are not obligated to indemnify you for damages related to use of our copyrighted materials but we will reimburse you for your costs of taking any action that we or our affiliates have asked you to take in any litigation or proceeding.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 68–69)
What This Means (2025 FDD)
According to the 2025 FDD, if a Sonesta Select Sonesta Essential franchisee is asked to take action in any copyright litigation, they must fully cooperate with Sonesta Select Sonesta Essential and its affiliates. This includes signing any documents that Sonesta Select Sonesta Essential believes are necessary to protect the copyrighted materials and assigning any related claims to them.
Sonesta Select Sonesta Essential retains control over the litigation or administrative proceedings, including the right to decide on prosecution, defense, and settlement. The franchisee is prohibited from communicating with any other party regarding the infringement, challenges, or claims, as Sonesta Select Sonesta Essential and its affiliates have the exclusive right to handle these disputes.
While Sonesta Select Sonesta Essential is not obligated to indemnify franchisees for damages related to the use of copyrighted materials, they will reimburse the franchisee for the costs of taking any action that Sonesta Select Sonesta Essential or its affiliates have requested them to take in any litigation or proceeding. This ensures that the franchisee is not financially burdened by actions taken at the franchisor's direction.
This arrangement is typical in franchising, where the franchisor protects its intellectual property while directing legal strategy, and the franchisee is expected to cooperate fully in these efforts. Franchisees should be aware of their obligations and rights in such situations, particularly regarding cost reimbursement for actions taken at the franchisor's request.