Does the Sonesta Simply Suites agreement allow the franchisor to declare any breach to be a default?

According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, Sonesta Simply Suites reserves the right to demand strict adherence to every term, condition, and covenant within the franchise agreement. They also retain the authority to declare any breach as an event of default. This clause grants Sonesta Simply Suites significant power in enforcing the franchise agreement.

For a prospective franchisee, this means that even a minor infraction of the franchise agreement could potentially be classified as a default, leading to serious consequences. It is crucial to understand that Sonesta Simply Suites has the discretion to determine what constitutes a breach and whether to declare it a default.

This provision is not uncommon in franchise agreements, as franchisors typically seek to maintain brand standards and protect their system. However, the breadth of this clause underscores the importance of carefully reviewing the franchise agreement and understanding all obligations before investing in a Sonesta Simply Suites franchise. Franchisees should seek clarification from Sonesta Simply Suites regarding what specific actions or omissions could be considered a breach leading to default.