For Sonesta Simply Suites, what constitutes non-compliance that would trigger the non-compliance charge?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- N. Non-Compliance Charge. In addition to our other rights and remedies, we may charge you a non-compliance charge in an amount equal to one percent (1%) of Gross Rooms Revenue per month for each month you are in non-compliance of any term of this Agreement, including failure to pay (or to have adequate amounts available for electronic transfer of) amounts you or your Affiliates owe us or our affiliates
or failure to timely provide required reports and financial statements. We may change or eliminate this charge in our sole discretion.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, a franchisee may incur a non-compliance charge for violating any term of the Franchise Agreement. This includes failing to pay amounts owed to Sonesta Simply Suites or its affiliates, or not having sufficient funds available for electronic transfers. It also covers failing to provide required reports and financial statements on time.
The non-compliance charge is significant, amounting to one percent (1%) of the Gross Rooms Revenue per month for each month the franchisee is in non-compliance. This charge is in addition to any other rights and remedies Sonesta Simply Suites may have. The franchisor retains the discretion to change or eliminate this charge.
For a prospective Sonesta Simply Suites franchisee, this means that strict adherence to the Franchise Agreement is crucial to avoid these charges. Ensuring timely payments, maintaining adequate funds for electronic transfers, and submitting all required reports and financial statements promptly are essential. Franchisees should carefully review the Franchise Agreement to understand all the terms and conditions to which they must adhere to avoid non-compliance charges.