Where must litigation be brought for Sonesta Select Sonesta Essential disputes, subject to arbitration?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN | SUMMARY |
|---|---|---|
| FRANCHISE AGREEMENT | ||
| 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 17 — **RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 70–75)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, subject to certain state laws and the arbitration requirement, litigation must be initiated in the court closest to the brand's principal place of business. Currently, this location is Newton, Massachusetts. However, Sonesta Select Sonesta Essential retains the right to pursue injunctive relief in any court that has the authority to hear the case.
This means that if a franchisee has a dispute with Sonesta Select Sonesta Essential that is not subject to arbitration, they will likely need to bring the case in a court near Newton, Massachusetts. This could increase legal costs for franchisees who are not located near Massachusetts.
It is important to note that this is subject to state law, which means that some states may have laws that override this provision. Additionally, Sonesta Select Sonesta Essential can seek injunctive relief in any court, which means that they could potentially bring a case against a franchisee in a different location if they are seeking an injunction. Franchisees should consult with a legal professional to understand the implications of these provisions in their specific circumstances.