What is the effective date of a waiver under the Sonesta Simply Suites agreement?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Waiver of Obligations. We and you may by written instrument unilaterally waive or reduce any obligation of or restriction upon the other under this Agreement, effective upon delivery of written notice to the other or another effective date stated in the notice of waiver. Any waiver granted will be without prejudice to any other rights we or you have, will be subject to continuing review, and may be revoked at any time and for any reason effective upon delivery of 10 days' prior written notice. We and you will not waive or impair any right, power, or option this Agreement reserves (including our right to demand exact compliance with every term, condition, and covenant or to declare any breach to be a default and to terminate this Agreement before its term expires) because of any custom or practice at variance with this Agreement's terms; our or your failure, refusal, or neglect to exercise any right under this Agreement or to insist upon the other's compliance with this Agreement, including any Brand Standard; our waiver of or failure to exercise any right, power, or option, whether of the same, similar, or different nature, with other Brand Hotels; the existence of franchise agreements for other Brand Hotels which contain provisions different from those contained in this Agreement; or our acceptance of any payments due from you after any breach of this Agreement. No special or restrictive legend or endorsement on any check or similar item given to us will be a waiver, compromise, settlement, or accord and satisfaction. We are authorized to remove any legend or endorsement, which then will have no effect.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, a waiver of obligations, whether initiated by the franchisor or the franchisee, becomes effective either upon the delivery of written notice to the other party or on another effective date specifically stated in the notice of waiver. This means that the waiver does not automatically take effect upon issuance but requires either acknowledgment of receipt or adherence to a future date as outlined in the waiver notice.
This provision allows Sonesta Simply Suites some flexibility in determining when a waiver takes effect, which could be beneficial in situations where immediate implementation is not feasible or desirable. However, it also places a responsibility on both parties to carefully document and track all waiver notices to avoid any confusion regarding the effective dates.
It is also important to note that any waiver granted is not permanent. Sonesta Simply Suites retains the right to revoke a waiver at any time and for any reason, provided they give 10 days' prior written notice. This ensures that Sonesta Simply Suites can reinstate the original terms of the agreement if circumstances change or if they determine that the waiver is no longer in their best interest. This condition underscores the importance of franchisees understanding that any granted waiver is subject to continuing review and is not a guaranteed, long-term alteration of the franchise agreement.
Furthermore, the franchise agreement explicitly states that Sonesta Simply Suites' failure to enforce any right or insist on compliance does not constitute a waiver of those rights. This protects Sonesta Simply Suites' ability to enforce all terms of the agreement in the future, regardless of past leniency. Franchisees should be aware that Sonesta Simply Suites' actions or inactions do not set a precedent for future waivers or modifications of the agreement.