What waivers are included in Section 17.I of the Sonesta Select Sonesta Essential Franchise Agreement?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- WAIVER OF PUNITIVE DAMAGES, JURY TRIAL, AND CLASS ACTION BAR. If and then only to the extent required by the Minnesota Franchises Law, Section 17.I of the Franchise Agreement is deleted.
-
- INJUNCTIVE RELIEF. Section 17.J of the Franchise Agreement is deleted and replaced with the following:
- J. Injunctive Relief. Nothing in this Agreement, including the provisions of Section 17.F, bars our right to seek specific performance of the provisions of this Agreement and injunctive relief against threatened or actual conduct that will cause us, the Marks and/or the Franchise System loss or damage, under customary equity rules, including applicable rules for obtaining restraining orders and temporary or preliminary injunctions (subject to our obligation to arbitrate the underlying claim if required by Section 17.F). You agree that we may seek such injunctive relief in addition to such further or other relief as may be available at law or in equity. You agree that your only remedy if an injunction is entered against you will be the dissolution of that injunction, if warranted, upon due hearing (all claims for damages by injunction being expressly waived hereby).
-
- LIMITATIONS OF CLAIMS. The following is added to the end of Section 17.L of the Franchise Agreement:
Minnesota law provides that no action may be commenced under Minn. Stat Sect. 80C.17 more than 3 years after the cause of action accrues.
Source: Item 23 — RECEIPTS (FDD pages 84–261)
What This Means (2025 FDD)
According to the 2025 Sonesta Select Sonesta Essential Franchise Disclosure Document, Section 17.I of the Franchise Agreement includes a waiver of punitive damages and jury trial, as well as a class action bar. However, this waiver is conditional and may be deleted if required by the Minnesota Franchises Law. This means that the enforceability of these waivers can depend on the specific jurisdiction and applicable franchise laws.
For prospective Sonesta Select Sonesta Essential franchisees, this implies that the standard franchise agreement terms regarding dispute resolution may not be uniformly applied across all states. Franchisees in Minnesota, for example, might have greater legal recourse through jury trials and class actions compared to franchisees in other states if the Minnesota Franchises Law necessitates the deletion of the waiver in Section 17.I. This could affect the franchisee's ability to seek certain types of damages or participate in collective legal actions against the franchisor.
Furthermore, the Illinois addendum specifies that Section 17.I cannot force anyone acquiring a Sonesta Select Sonesta Essential franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of the State of Illinois, to the extent applicable. This ensures that franchisees in Illinois retain their statutory rights and protections under state law, regardless of any waiver provisions in the franchise agreement. Therefore, prospective franchisees should carefully review the state-specific addenda to understand how these waivers are modified or limited by local franchise laws.