What waivers are included in the Incentive Note provided by Sonesta Select Sonesta Essential?

According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, the Incentive Note that franchisees sign includes specific waivers. The Incentive Note waives the franchisee's right to 'presentment, demand for payment, protest, notices of protest, dishonor, nonpayment of the Incentive Note and all notices of every kind.'

In simpler terms, this means that Sonesta Select Sonesta Essential does not have to formally present the note to the franchisee for payment, demand immediate payment, or issue a formal protest if payment is not made. The franchisee also waives their right to receive notices related to these actions or any notification of nonpayment. This concentrates more power with Sonesta Select Sonesta Essential regarding the collection of the incentive note.

Additionally, Sonesta Select Sonesta Essential has the right to grant renewals, extensions, modifications, compromises, releases, or discharges to other related parties without informing any guarantor or co-maker associated with the franchisee's Incentive Note. This provides Sonesta Select Sonesta Essential with considerable flexibility in managing the financial incentives and related agreements, potentially impacting the franchisee's obligations without requiring their direct consent or notification.