factual

When are failure to de-identify damages due for a Sonesta Simply Suites franchise?

Sonesta_Simply_Suites Franchise · 2025 FDD

Answer 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, failure to de-identify damages are due upon demand. If a franchisee fails to comply with all de-identification obligations within 30 days after the expiration or termination of the Franchise Agreement, Sonesta Simply Suites will charge $500 per day, plus expenses, for each day the franchisee remains in breach of their obligations.

These damages are in addition to any other legal remedies Sonesta Simply Suites may pursue. De-identification refers to the process of removing Sonesta Simply Suites branding and trademarks from the property after the franchise agreement ends. This ensures that the property no longer represents itself as a Sonesta Simply Suites location.

This fee serves as a strong incentive for franchisees to promptly remove all branding and signage after the franchise agreement terminates, protecting Sonesta Simply Suites's brand integrity. Franchisees should be aware of these potential costs and have a clear plan for de-identification in the event of termination or expiration of their franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.