What constitutes a pattern of non-compliance for a Sonesta Simply Suites franchisee?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
If we determine in good faith that the effect of any law enacted hereafter will be materially detrimental to our interests, we may terminate this Agreement by delivering written notice thereof to you.
- 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
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, non-compliance can result in a charge. Specifically, Sonesta Simply Suites may charge a non-compliance fee of 1% of Gross Rooms Revenue per month for each month a franchisee fails to comply with any term of the Franchise Agreement. This includes failing to pay amounts owed to Sonesta Simply Suites or its affiliates or failing to provide required reports and financial statements on time.
This non-compliance charge is in addition to any other rights and remedies Sonesta Simply Suites may have. This means that in addition to the 1% charge, Sonesta Simply Suites could pursue other legal or contractual remedies for the franchisee's non-compliance. However, Sonesta Simply Suites retains the discretion to change or eliminate this non-compliance charge.
For a prospective Sonesta Simply Suites franchisee, this highlights the importance of adhering to all terms of the Franchise Agreement, including timely payments and report submissions, to avoid incurring additional charges. Franchisees should ensure they understand all requirements and maintain open communication with Sonesta Simply Suites to address any potential compliance issues promptly. The fact that Sonesta Simply Suites can change or eliminate this charge at its discretion introduces an element of uncertainty, making it crucial for franchisees to stay informed of any policy changes.