If Sonesta Simply Suites suspends obligations under the agreement, does this constitute a termination?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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's 2025 Franchise Disclosure Document, the suspension of obligations under the agreement by Sonesta Simply Suites does not constitute a termination of the agreement. Specifically, upon providing notice of an Event of Default, Sonesta Simply Suites has the option to suspend its obligations, which may include Central Reservation Services, removing the hotel's listing from directories and advertising, and/or suspending the franchisee from the Central Reservation System without prior notice. Sonesta Simply Suites also retains the right to redirect reservations made for the franchisee's hotel to other Network Hotels after providing notice of the Event of Default.
If the franchisee fully rectifies the Event of Default within the stipulated timeframe, which includes settling any outstanding amounts and paying the administrative fee for service resumption, Sonesta Simply Suites will reinstate the hotel to the Central Reservation System and include it in future directories and advertising. However, Sonesta Simply Suites is not obligated to redirect previously diverted reservations back to the franchisee's hotel, and the franchisee is not entitled to compensation for the period of suspension or removal.
The franchise agreement explicitly states that Sonesta Simply Suites's exercise of these suspension rights does not equate to an actual or constructive termination of the agreement. These rights are in addition to any other rights Sonesta Simply Suites may have, including the right to terminate the agreement separately. Furthermore, the exercise of these rights does not constitute a waiver of any breach by the franchisee of any term, covenant, or condition of the agreement.