For Sonesta Simply Suites, where must disputes be arbitrated, excluding claims to collect amounts owed?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN | SUMMARY |
|---|---|---|
| u. Dispute | Section 17.F | We and you must arbitrate all disputes (except for claims to collect amounts owed) at |
| resolution by | a location within 50 miles of our or, as applicable, our successor’s or assign’s then- | |
| arbitration or | current principal place of business (currently, Newton, Massachusetts) (subject to | |
| mediation | state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 66–70)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, disputes between Sonesta Simply Suites and a franchisee (excluding claims to collect amounts owed) must be resolved through arbitration. The arbitration location will be within 50 miles of Sonesta Simply Suites's principal place of business, or that of its successor or assignee. Currently, Sonesta Simply Suites's principal place of business is in Newton, Massachusetts. This arbitration agreement is subject to state law.
This means that if a franchisee has a dispute with Sonesta Simply Suites that isn't about collecting money owed, the franchisee will likely need to travel to the Boston area to resolve it through arbitration. This could involve significant travel expenses and time, especially for franchisees located far from Massachusetts.
It is important to note that this requirement does not apply to claims by Sonesta Simply Suites to collect amounts owed by the franchisee, and the choice of forum and choice of law may be subject to state law. Prospective franchisees should carefully consider the implications of this arbitration clause, including the potential costs and inconvenience of arbitrating disputes in Massachusetts.