For Sonesta Simply Suites franchisees, where must litigation be brought, subject to the arbitration requirement, and what exception applies in North Dakota?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- The "Summary" section of Item 17(v), entitled Choice of forum, is deleted and replaced with the following:
Subject to the arbitration requirement, litigation must be brought in the court nearest to our or, as applicable, our successor's or assign's then current principal place of business (currently, Newton, Massachusetts), except that, to the extent required by North Dakota Franchise Investment Law, you may bring an action in North Dakota.
Source: Item 23 — RECEIPTS (FDD pages 80–246)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, litigation, subject to arbitration, must occur in the court nearest to Sonesta Simply Suites' principal place of business, which is currently in Newton, Massachusetts. However, there is an exception for franchisees in North Dakota.
Specifically, the FDD states that to the extent required by the North Dakota Franchise Investment Law, a Sonesta Simply Suites franchisee may bring an action in North Dakota. This means that while the standard forum for litigation is Massachusetts, North Dakota franchisees have the option to litigate claims arising under the North Dakota Franchise Investment Law within their own state.
This provision ensures that Sonesta Simply Suites franchisees in North Dakota are not unduly burdened by having to travel to Massachusetts for legal proceedings related to franchise investment law claims. It reflects a balance between the franchisor's preference for a consistent legal forum and the franchisee's rights under state law.