What must a Sonesta Select Sonesta Essential franchisee do to be eligible for reimbursement in a trademark infringement proceeding?

According to the 2025 Franchise Disclosure Document, Sonesta Select Sonesta Essential will reimburse a franchisee for damages and reasonable expenses incurred in a trademark infringement proceeding if the franchisee meets certain conditions. Specifically, the franchisee must have promptly notified Sonesta Select Sonesta Essential of the proceeding. Additionally, the franchisee must comply with Sonesta Select Sonesta Essential's directions in responding to the proceeding.

Sonesta Select Sonesta Essential retains the option to defend and control the defense of any proceeding arising from the franchisee's use of any Mark under the Franchise Agreement. This means that while the franchisee may be initially responsible for notifying Sonesta Select Sonesta Essential and following their directions, Sonesta Select Sonesta Essential can step in to manage the legal process.

This provision protects franchisees from bearing the full financial burden of trademark disputes arising from their authorized use of Sonesta Select Sonesta Essential's Marks. However, it's crucial for franchisees to adhere to the notification and compliance requirements to ensure they are eligible for reimbursement. Franchisees should clarify the specific procedures for notification and compliance during the onboarding process to avoid any potential issues.