If an injunction is entered against a Sonesta Select Sonesta Essential franchisee, what is their only remedy?

According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, if an injunction is entered against a franchisee, their only recourse is to seek the dissolution of the injunction upon a due hearing if warranted. The franchisee expressly waives any claim for damages caused by the injunction.

This means that if Sonesta Select Sonesta Essential obtains an injunction against a franchisee for any reason, such as violating the franchise agreement or infringing on trademarks, the franchisee cannot sue Sonesta Select Sonesta Essential for any financial losses they incur as a result of the injunction. The franchisee's sole legal avenue is to argue in court that the injunction should be lifted.

This clause is significant because it limits the franchisee's legal options and potential compensation in the event of an injunction. Injunctions can disrupt business operations and cause financial harm, so waiving the right to claim damages could be a substantial disadvantage for the franchisee. Prospective franchisees should carefully consider this provision and seek legal counsel to understand its implications fully.

It is common for franchise agreements to include clauses that limit liability and specify remedies, but the extent of these limitations can vary. Franchisees should be aware of these provisions and assess their potential impact on their business. They may also want to negotiate these terms with the franchisor, although the franchisor may not be willing to make changes.