Where must litigation be brought for a Sonesta Select Sonesta Essential franchise, subject to the arbitration requirement?
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, subject to certain conditions, litigation must be brought in the court nearest to Sonesta Select Sonesta Essential's principal place of business. Currently, the principal place of business is Newton, Massachusetts. However, this is subject to the arbitration requirement, meaning that disputes will generally be resolved through arbitration rather than litigation. Also, these conditions are subject to state law.
This means that if a franchisee has a dispute with Sonesta Select Sonesta Essential that is not subject to arbitration, the franchisee may have to litigate the matter in a court near Newton, Massachusetts, regardless of where the franchisee's business is located. This could increase the franchisee's legal costs, as they may have to hire attorneys and travel to Massachusetts for court proceedings.
However, Sonesta Select Sonesta Essential retains the right to seek injunctive relief in any court of competent jurisdiction. This means that Sonesta Select Sonesta Essential can file a lawsuit against a franchisee in any court that has the authority to hear the case, regardless of the location of Sonesta Select Sonesta Essential's principal place of business. Injunctive relief typically involves seeking a court order to stop someone from doing something, such as violating the terms of the franchise agreement. This clause gives Sonesta Select Sonesta Essential more flexibility in pursuing legal action against franchisees when seeking this type of remedy.