If a Sonesta Simply Suites franchisee makes misrepresentations, is that considered an Event of Default?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
monetary Event of Default that is incapable of cure within 30 days, if you fail to diligently pursue cure of such default and fail to cure the default within the additional time periods we set forth in the notice of default.
- (1) An "Event of Default" will occur if you fail to satisfy or comply with any of the obligations, requirements, conditions, or terms set forth in (i) this Agreement, the Brand Standards (including the minimum performance scores required by the Brand Manual), or any attachment to this Agreement; or (ii) any other agreement you have with us, or an Entity, relating to your Hotel, including, any computer system agreement, or any agreem
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, making misrepresentations to the franchisor can be considered an Event of Default. Specifically, if a franchisee makes any misrepresentations, whether when entering into the Franchise Agreement or during the performance of their obligations, it constitutes grounds for default.
This means that Sonesta Simply Suites has the right to take action if it discovers that a franchisee provided false or misleading information at any point. This could include misrepresentations made during the initial application process or any ongoing reporting or communication with the franchisor.
If an Event of Default occurs, Sonesta Simply Suites may suspend its obligations under the agreement, remove the hotel's listing from directories and advertising, and divert reservations to other hotels in the network. The franchisee has an opportunity to cure the default, but failure to do so could lead to further consequences, including termination of the franchise agreement.