What constitutes a default under the Note for Sonesta Simply Suites?

According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, a default under the terms of the Agreement is also considered a default of the Note. This means that if a franchisee fails to meet the obligations outlined in the overarching Franchise Agreement with Sonesta Simply Suites, it will simultaneously trigger a default under the Note. The Holder of the Note can then pursue remedies available under both the Agreement and the Note.

This clause creates a direct link between the Franchise Agreement and the Note, ensuring that Sonesta Simply Suites has recourse if a franchisee violates the terms of either document. It also allows the Holder to pursue remedies available under both the Agreement and the Note, providing flexibility in addressing defaults.

Prospective franchisees should carefully review both the Franchise Agreement and the Note to fully understand their obligations and the potential consequences of failing to meet them. Understanding what actions or omissions constitute a default is crucial for maintaining a healthy relationship with Sonesta Simply Suites and avoiding potential legal or financial repercussions.