Who determines the appropriate action to take in the event of a conflict between Sonesta Simply Suites franchisees?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
laims all applicable common law rights for all of the Marks listed above.
Use of the Marks: Your Duties
You must immediately notify us of any apparent infringement of or challenge to your use of any of the Marks. We may take any action we think appropriate, and at our option we may control any litigation or administrative proceeding.
If you have timely notified us of a claim or proceeding and comply with the Franchise Agreement, we will indemnify you for all damages for which you are held liable in any proceeding from your authorized use of the Marks.
You may not communicate with any other person regarding any such infringement, challenges, or claims and only we and our affiliates will have the right to handle disputes concerning the Marks. We and our affiliates will take the action we and they consider appropriate (including no action) with respect to such challenges and claims. You must extend your full cooperation to us and our affiliates in these matters.
Source: Item 1 — of this disclosure document for all Network Brands and do not maintain physically separate offices and training facilities for each Network Brand. While we do not anticipate conflicts between franchisees of different brands, we will analyze any future conflict and take action (if any) that we deem appropriate. (FDD page 62)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Sonesta Simply Suites specifies that Sonesta RL Hotels Franchising Inc. retains the authority to determine the appropriate course of action regarding disputes related to the brand's trademarks. According to the FDD, franchisees must immediately inform Sonesta Simply Suites of any potential infringement or challenges to the use of the brand's trademarks.
Sonesta Simply Suites has the option to control any litigation or administrative proceeding related to trademark disputes. Franchisees are prohibited from communicating with any other party regarding infringements, challenges, or claims related to the trademarks. Only Sonesta Simply Suites and its affiliates have the right to handle these disputes, and they will decide what action to take, including taking no action at all.
Franchisees are required to fully cooperate with Sonesta Simply Suites and its affiliates in these matters and must sign any documents deemed necessary to protect the trademarks. Additionally, franchisees must assign to Sonesta Simply Suites any claims they may have related to these disputes. The decision made by Sonesta Simply Suites regarding the prosecution, defense, and settlement of any trademark dispute is final, and any recoveries resulting from these disputes will be for the benefit of Sonesta Simply Suites.