What rights do Sonesta Select Sonesta Essential and its affiliates have regarding disputes concerning the Marks?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
you may have to change to an alternative trademark, which may increase your expenses.
Use of the Marks: Your Duties
You must immediately notify us of any apparent infringement of or challenge to your use of any of the Marks. We may take any action we think appropriate, and at our option we may control any litigation or administrative proceeding.
If you have timely notified us of a claim or proceeding and comply with the Franchise Agreement, we will indemnify you for all damages for which you are held liable in any proceeding from your authorized use of the Marks.
You may not communicate with any other person regarding any such infringement, challenges or claims and only we and our affiliates will have the right to handle disputes concerning the Marks. We and our affiliates will take the action we and they consider appropriate (including no action) with respect to such challenges and claims. You must extend your full cooperation to us and our affiliates in these matters.
Source: Item 13 — TRADEMARKS (FDD pages 65–68)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, Sonesta Select Sonesta Essential maintains significant control over disputes involving its trademarks. As a franchisee, you are required to immediately inform Sonesta Select Sonesta Essential of any potential infringement or challenges to the use of their marks. Sonesta Select Sonesta Essential then has the option to take any action they deem appropriate, including controlling any litigation or administrative proceedings.
Importantly, the franchisee is prohibited from communicating with any other party regarding infringements, challenges, or claims related to the marks. Only Sonesta Select Sonesta Essential and its affiliates have the authority to handle these disputes. Sonesta Select Sonesta Essential and its affiliates will decide what action to take, including choosing not to take any action at all. Franchisees must fully cooperate with Sonesta Select Sonesta Essential and its affiliates in these matters and sign any documents necessary to protect the marks, assigning any related claims to them.
Sonesta Select Sonesta Essential's decision regarding the prosecution, defense, and settlement of any trademark dispute is final. Furthermore, any monetary recoveries resulting from these disputes belong to Sonesta Select Sonesta Essential. In essence, while franchisees are obligated to report any potential trademark issues, Sonesta Select Sonesta Essential retains complete control over the management and resolution of such disputes, ensuring brand consistency and legal protection of its intellectual property.