obligation

What action must a Sonesta Simply Suites franchisee take if they notice an infringement of the Marks?

Sonesta_Simply_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

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. You must sign any documents we believe are necessary to obtain protection for the Marks and assign to us any claims you may have related to these matters. Our decision as to the prosecution, defense and settlement of the dispute will be final. All recoveries made as a result of disputes with third parties regarding the Marks will be for our account.

Source: Item 13 — TRADEMARKS (FDD pages 62–64)

What This Means (2025 FDD)

According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, a franchisee must immediately notify Sonesta Simply Suites of any apparent infringement of or challenge to their use of any of the Marks. After notifying Sonesta Simply Suites, the franchisee must not communicate with any other person regarding any such infringement, challenges, or claims. Only Sonesta Simply Suites and its affiliates have the right to handle disputes concerning the Marks.

Sonesta Simply Suites has the option to take any action it deems appropriate, including controlling any litigation or administrative proceeding. The franchisee is required to fully cooperate with Sonesta Simply Suites and its affiliates in these matters and must sign any documents Sonesta Simply Suites believes are necessary to obtain protection for the Marks. Additionally, the franchisee must assign to Sonesta Simply Suites any claims they may have related to these matters. Sonesta Simply Suites's decision regarding the prosecution, defense, and settlement of any dispute will be final, and all recoveries made as a result of disputes with third parties regarding the Marks will be for Sonesta Simply Suites's account.

If the franchisee has provided timely notification of a claim or proceeding and complies with the Franchise Agreement, Sonesta Simply Suites will indemnify the franchisee for all damages for which they are held liable in any proceeding from their authorized use of the Marks. This means that as long as the franchisee follows the rules and promptly informs Sonesta Simply Suites of any potential trademark issues, Sonesta Simply Suites will cover the franchisee's losses in case of legal action arising from the franchisee's authorized use of the trademarks.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.