Does the arbitration provision for Sonesta Simply Suites extend to disputes regarding Brand Standards?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- (4) any Brand Standard;
must be submitted for binding arbitration, on demand of either party, to the American Arbitration Association ("AAA"). The arbitration proceedings will be conducted by one arbitrator and, except as this Section otherwise provides, according to the AAA's thencurrent Commercial Arbitration Rules. All proceedings will be conducted at a suitable location chosen by the arbitrator that is within 50 miles of our or, as applicable, our
Source: Item 23 — RECEIPTS (FDD pages 80–246)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites FDD, the arbitration provision does extend to disputes regarding Brand Standards. Specifically, any dispute relating to Brand Standards must be submitted for binding arbitration if either party demands it. This arbitration will be handled by the American Arbitration Association (AAA).
The arbitration proceedings will involve a single arbitrator and follow the AAA's current Commercial Arbitration Rules, unless otherwise specified. The location for these proceedings will be selected by the arbitrator within 50 miles of Sonesta Simply Suites' principal place of business, which is currently Newton, Massachusetts. However, the FDD notes an exception: if required by the North Dakota Franchise Investment Law, the arbitration site must be mutually agreed upon by both parties, unless this requirement is preempted by the Federal Arbitration Act.
The Federal Arbitration Act governs all aspects of the arbitration process. The arbitrator's decisions are final and binding, and their awards can be enforced in any court with the appropriate jurisdiction. This means that a franchisee must resolve disputes regarding Brand Standards through arbitration rather than litigation, potentially affecting the cost and speed of resolution.