Does Sonesta Select Sonesta Essential have to provide a reason for suspending obligations under the agreement?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) Upon notice of an Event of Default, we also may at any time, at our sole discretion, suspend our obligations under this Agreement (including Central Reservation Services as more fully described below) and may remove the listing of your Hotel from any directories we publish, and from any advertising we publish, or to remove or suspend you from the Central Reservation System immediately without notice to you, and/or rescind any terms to this Agreement that were negotiated between the parties.
We will have the right to divert reservations previously made for your Hotel to other Network Hotels after giving you notice of an Event of Default.
If you fully cure the Event of Default within the time provided in our notice, including payment of any amounts accruing to us under this Agreement after the date of our notice, and further including payment of our then applicable administrative fee for resumption of services, we will restore you to the Central Reservation System, and add you to all future directories we publish and to all advertising we subsequently disseminate (except advertising that was ordered before your reinstatement), but we will not be required to redirect to you any reservations previously made for your Hotel and diverted to other Network Hotels during the period of suspension or removal, and you will be entitled to no compensation in connection with our election to suspend or remove your Hotel from our directories, advertising or the Central Reservation System.
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Sonesta Select Sonesta Essential can suspend obligations under the franchise agreement if an Event of Default occurs. An Event of Default includes failing to comply with the obligations, requirements, conditions, or terms set forth in the agreement, the Brand Standards, or any other agreement with Sonesta Select Sonesta Essential. It also includes making misrepresentations to Sonesta Select Sonesta Essential.
Upon notice of an Event of Default, Sonesta Select Sonesta Essential has the discretion to suspend its obligations under the agreement. This includes Central Reservation Services, removing the hotel's listing from directories and advertising, and suspending the franchisee from the Central Reservation System. Sonesta Select Sonesta Essential can also divert reservations to other Network Hotels after providing notice of the Event of Default.
If the franchisee cures the Event of Default within the given notice period, including payment of all outstanding amounts and an administrative fee for resumption of services, Sonesta Select Sonesta Essential will restore the franchisee to the Central Reservation System and include them in future directories and advertising. However, Sonesta Select Sonesta Essential is not required to redirect previously diverted reservations back to the franchisee, and the franchisee is not entitled to compensation for the period of suspension or removal.