Does the Sonesta Simply Suites Franchise Agreement address changes in law?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
e. Force Majeure. In no event shall either party be liable for any failure or delay in performance (except for the obligation to remit fees) due to causes or circumstances beyond its reasonable control and without its fault or negligence (including, but not limited to, third party strikes; communication line failures; epidemics; pandemics; natural disasters including lightning strikes, hurricanes, earthquakes, tornadoes, landslides, or floods; war, whether declared or not; or governmental action or change in law).
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, the Franchise Agreement addresses changes in law within the context of 'Force Majeure'. The agreement states that neither party will be held liable for any failure or delay in performance, except for the obligation to remit fees, if it is due to circumstances beyond their control. These circumstances include governmental action or changes in law.
This means that if a new law is enacted that prevents either Sonesta Simply Suites or the franchisee from fulfilling their obligations under the agreement, the affected party may not be held liable for non-performance, with the exception of the franchisee's obligation to pay fees. This clause provides a degree of protection for both parties in the event of unforeseen legal changes that impact their ability to operate.
However, it's important to note that this protection is not absolute. The 'Force Majeure' clause typically requires that the event be truly beyond the party's control and without their fault or negligence. A prospective Sonesta Simply Suites franchisee should consult with a legal professional to fully understand the scope and limitations of this clause and how it might apply to specific legal changes.