What is the deadline to comply with de-identification obligations after the expiration or termination of a Sonesta Simply Suites Franchise Agreement to avoid damages?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS (Note 1) |
|---|---|---|---|
| Failure to De Identify Damages | $500 per day, plus our expenses | Upon demand | If you fail to comply with all of your de identification obligations within 30 days after the expiration or termination of your Franchise Agreement, you must pay us this fee for each day in which you are in breach of your obligations. This is in addition to other damages and remedies to which we may be entitled under applicable law. |
Source: Item 6 — OTHER FEES (FDD pages 25–36)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, a franchisee has 30 days after the expiration or termination of the Franchise Agreement to comply with all de-identification obligations. Failure to do so results in a fee of $500 per day for each day the franchisee remains in breach of these obligations. This fee is in addition to any other damages or remedies Sonesta Simply Suites may be entitled to under applicable law.
De-identification refers to removing Sonesta Simply Suites branding and marks from the property, ensuring it no longer appears to be a Sonesta Simply Suites franchise. This includes signage, marketing materials, and any other items that identify the property as a Sonesta Simply Suites location.
The daily fee of $500 can quickly become a significant expense, so it is crucial for franchisees to adhere to the 30-day deadline. Franchisees should have a plan in place to efficiently remove all branding upon termination or expiration of the agreement to avoid these penalties. This could involve budgeting for contractors or allocating internal resources to complete the de-identification process promptly.
Prospective franchisees should carefully review the specific de-identification obligations outlined in the Franchise Agreement to fully understand what is required of them upon termination or expiration. Understanding these requirements in advance can help ensure a smooth and cost-effective transition.