Is there a waiver of jury trial related to the Note for Sonesta Select Sonesta Essential?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
THE MAKER AND THE HOLDER HEREBY WAIVE TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO WHICH THE MAKER AND THE HOLDER MAY BE PARTIES, ARISING OUT OF OR IN ANY WAY PERTAINING TO THIS NOTE.
IT IS AGREED AND UNDERSTOOD THAT THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL CLAIMS AGAINST ALL PARTIES TO SUCH ACTIONS OR PROCEEDINGS, INCLUDING CLAIMS AGAINST PARTIES WHO ARE NOT PARTIES TO THIS NOTE.
Source: Item 23 — RECEIPTS (FDD pages 84–261)
What This Means (2025 FDD)
According to the 2025 FDD, Sonesta Select Sonesta Essential's Note includes a waiver of trial by jury. Specifically, the Maker and the Holder both waive their rights to a jury trial in any action or proceeding pertaining to the Note. This waiver extends to all claims against all parties involved in such actions or proceedings, even those who are not directly parties to the Note.
This means that a franchisee, as the Maker of the Note, agrees to resolve any disputes related to the Note through a bench trial (i.e., a trial by judge) rather than a jury trial. This waiver applies to any legal actions the Holder (which includes any subsequent holder or participant in the Note) might bring against the Maker. The waiver is mutual, meaning Sonesta Select Sonesta Essential also waives its right to a jury trial.
Such waivers are relatively common in commercial finance agreements. Franchisees should understand that they are giving up an important legal right to have disputes decided by a jury of their peers. While this may streamline dispute resolution, it also means the outcome rests solely with the judge, who may be more inclined to side with the larger corporate entity (Sonesta Select Sonesta Essential). Franchisees should consult with legal counsel to fully understand the implications of this waiver before signing any agreement.