For Sonesta Simply Suites, are all disputes subject to arbitration, and if not, what is the exception?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
ement and related agreements. You should read these provisions in the agreements attached to this disclosure document.**
| PROVISION | SECTION IN | SUMMARY |
|---|---|---|
| FRANCHISE AGREEMENT | ||
| t. Integration / merger clause | Section 17.N | Only the terms of Franchise Agreement, including its attachments and the Brand Standards, are binding (subject to state law). Any representations or promises outside of this Disclosure Document and the Franchise Agreement may not be enforceable. |
| 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 the 2025 Sonesta Simply Suites Franchise Disclosure Document, Sonesta Simply Suites requires franchisees to arbitrate all disputes. This means that instead of going to court, disputes are resolved through a neutral third party. However, there is an exception: claims to collect amounts owed are not subject to arbitration. This means Sonesta Simply Suites can pursue legal action in court to recover any outstanding payments from a franchisee without going through arbitration.
The arbitration will occur within 50 miles of Sonesta Simply Suites' principal place of business, which is currently in Newton, Massachusetts, or within 50 miles of their successor's or assign's principal place of business. This location requirement could mean added travel costs for franchisees who do not reside near Newton, Massachusetts.
Subject to the arbitration requirement, any litigation must be brought in the court nearest to Sonesta Simply Suites' principal place of business, or that of their successor or assign, which is currently Newton, Massachusetts. However, Sonesta Simply Suites retains the right to seek injunctive relief in any court with jurisdiction. Injunctive relief typically involves seeking a court order to stop someone from doing something, which Sonesta Simply Suites might pursue in cases of trademark infringement or breach of contract, for example.