Does Sonesta Simply Suites have to provide a reason for suspending obligations under the agreement?
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 the 2025 Sonesta Simply Suites Franchise Disclosure Document, Sonesta Simply Suites has the right to suspend obligations under the agreement if an Event of Default occurs. Upon providing notice of the Event of Default, Sonesta Simply Suites may suspend its obligations, including Central Reservation Services, remove the hotel's listing from directories and advertising, and remove or suspend the franchisee from the Central Reservation System. Sonesta Simply Suites also has the right to divert reservations to other Network Hotels after giving notice of the Event of Default.
If the franchisee fully cures the Event of Default within the given notice period, including payment of all amounts owed and an administrative fee for resumption of services, Sonesta Simply Suites will restore the franchisee to the Central Reservation System and include them in future directories and advertising. However, Sonesta Simply Suites is not required to redirect previously diverted reservations back to the franchisee, and the franchisee will not be compensated for any losses during the suspension period.
The exercise of these rights by Sonesta Simply Suites does not constitute a termination of the agreement and is in addition to any other rights Sonesta Simply Suites may have. Furthermore, exercising these rights does not waive any breach of the agreement by the franchisee. Therefore, Sonesta Simply Suites is obligated to provide notice of an Event of Default before suspending obligations under the agreement, effectively providing a reason for the suspension.