Is Sonesta Simply Suites authorized to remove legends or endorsements on checks?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
No special or restrictive legend or endorsement on any check or similar item given to us will be a waiver, compromise, settlement, or accord and satisfaction. We are authorized to remove any legend or endorsement, which then will have no effect.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, Sonesta Simply Suites is authorized to remove any special or restrictive legend or endorsement on any check or similar item given to them by a franchisee without it constituting a waiver, compromise, settlement, or accord and satisfaction. After removal, the legend or endorsement will have no effect.
This clause protects Sonesta Simply Suites from inadvertently waiving their rights due to restrictive legends franchisees might add to checks. For example, if a franchisee includes a note on a check stating that the payment represents full settlement of a disputed amount, Sonesta Simply Suites can remove that legend and still pursue the full amount they believe is owed.
This is a fairly standard clause in franchise agreements. It ensures that the franchisor retains its rights and is not bound by unilateral conditions placed on payments by the franchisee. Prospective franchisees should be aware of this provision, as it means they cannot use restrictive endorsements on checks as a means of settling disputes or altering the terms of the franchise agreement.