What are the Sonesta Simply Suites franchisee's obligations after a Condemnation Termination?

According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, in the event of a Condemnation Termination, the franchisee is obligated to fulfill two primary requirements. First, the franchisee must pay all amounts that have accrued up to the effective date of the termination. This likely includes any outstanding franchise fees, marketing contributions, or other charges owed to Sonesta Simply Suites. Second, the franchisee must adhere to the post-termination requirements as outlined in the franchise agreement. These post-termination requirements are not specified in this section, but franchisees should refer to the relevant section of the franchise agreement for a complete list of obligations.

Additionally, the FDD states that Sonesta Simply Suites franchisees will not be obligated to pay Lost Revenue Damages if the franchise agreement is terminated due to condemnation.

Condemnation refers to the taking of private property for public use by a government entity, often through eminent domain. This clause outlines the financial responsibilities of the franchisee upon such an event and protects them from being penalized for lost revenue due to circumstances beyond their control. Prospective franchisees should carefully review the full scope of post-termination requirements to understand all their obligations upon termination, including those related to condemnation.