What is the franchisee's sole remedy if an injunction is entered against them by Sonesta Simply Suites?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- J. Injunctive Relief. Nothing in this Agreement, including the provisions of Section 17.F, bars our right to obtain specific performance of the provisions of this Agreement and injunctive relief against any threatened or actual conduct that will cause us, the Marks or the Franchise System loss or damage, under customary equity rules, including applicable rules for obtaining restraining orders and temporary or preliminary injunctions. You agree that we may seek such relief from any court of competent jurisdiction in addition to such further or other relief as may be available to us at law or in equity. You agree that we will not be required to post a bond to obtain injunctive relief and that your only remedy if an injunction is entered against you will be the dissolution of that injunction, if warranted, upon due hearing, and you hereby expressly waive any claim for damages caused by such injunction.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, if an injunction is issued against a franchisee, their sole remedy is the dissolution of that injunction, if warranted, upon due hearing. The franchisee expressly waives any claim for damages caused by the injunction.
This means that if Sonesta Simply Suites seeks and obtains a court order (injunction) to stop a franchisee from doing something that Sonesta Simply Suites believes is harmful to the brand or in violation of the franchise agreement, the franchisee's recourse is limited. They cannot sue Sonesta Simply Suites for any financial losses or damages they incur as a result of the injunction being in place, even if the injunction later turns out to be unwarranted.
This clause is significant because it shifts the risk to the franchisee. Typically, a party seeking an injunction might be required to post a bond to cover potential damages to the other party if the injunction is later found to be unjustified. Sonesta Simply Suites specifically states that it is not required to post a bond, and the franchisee waives their right to claim damages. A prospective franchisee should carefully consider this provision and understand the potential financial implications if an injunction is issued against them, even temporarily.