If Sonesta Simply Suites suspends obligations, are they required to provide a timeline for reinstatement?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon notice of an Event of Default, we also may at any time, at our sole discretion, suspend our obligations under this Agreement (including Central Reservation Services as more fully described below) and may remove the listing of your Hotel from any directories we publish, and from any advertising we publish, or to remove or suspend you from the Central Reservation System immediately without notice to you, and/or rescind any terms to this Agreement that were negotiated between the parties.
We will have the right to divert reservations previously made for your Hotel to other Network Hotels after giving you notice of an Event of Default.
If you fully cure the Event of Default within the time provided in our notice, including payment of any amounts accruing to us under this Agreement after the date of our notice, and further including payment of our then applicable administrative fee for resumption of services, we will restore you to the Central Reservation System, and add you to all future directories we publish and to all advertising we subsequently disseminate (except advertising that was ordered before your reinstatement), but we will not be required to redirect to you any reservations previously made for your Hotel and diverted to other Network Hotels during the period of suspension or removal, and you will be entitled to no compensation in connection with our election to suspend or remove your Hotel from our directories, advertising or the Central Reservation System.
You agree that our exercise of these rights will not result in actual or constructive termination of this Agreement, and that the rights granted to us in this Section 14.A.(3) are in addition to, and apart from, any other rights we may have in this Agreement, including our right to terminate this Agreement.
If we exercise any of these rights, the exercise will not be a waiver of any breach by you of any term, covenant, or condition of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, if a franchisee commits an Event of Default, Sonesta Simply Suites has the right to suspend its obligations under the agreement. This includes services like Central Reservation Services and the removal of the hotel's listing from directories and advertising.
However, Sonesta Simply Suites is not obligated to provide a timeline for reinstatement, but if the franchisee cures the default within the notice period, including payments and an administrative fee, Sonesta Simply Suites will restore the franchisee to the Central Reservation System and include them in future directories and advertising. The brand is not required to redirect previously diverted reservations back to the franchisee's hotel.
The exercise of these rights by Sonesta Simply Suites does not constitute a termination of the agreement and does not waive any breach by the franchisee. This means that even if Sonesta Simply Suites suspends its obligations, it can still pursue other remedies available under the agreement.