Does the reimbursement for default remedies to Sonesta Simply Suites include attorney's fees?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS (Note 1) |
|---|---|---|---|
| Default Remedies | You shall reimburse us for all our costs and expenses we incur to remedy your default. | Case by case basis as incurred | Our expenses may include attorneys' fees (including fees for in-house attorneys), court costs and non-legal fees reasonably incurred to protect us, our subsidiaries, or affiliates or to remedy your default. |
Source: Item 6 — OTHER FEES (FDD pages 25–36)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, if a franchisee defaults on their agreement, they are responsible for reimbursing Sonesta Simply Suites for all costs and expenses incurred to remedy the default. These expenses may include attorneys' fees, including fees for in-house attorneys, court costs, and other non-legal fees. These costs must be reasonably incurred to protect Sonesta Simply Suites, its subsidiaries, or affiliates, or to remedy the franchisee's default.
This means that if a Sonesta Simply Suites franchisee fails to meet their obligations under the Franchise Agreement, they could be liable not only for the direct costs of the default but also for the legal expenses Sonesta Simply Suites incurs in addressing the issue. This could include the cost of both outside counsel and the time spent by Sonesta Simply Suites' own in-house legal team.
The fees for default remedies are determined on a case-by-case basis as they are incurred. This lack of a fixed amount makes it difficult for a prospective franchisee to budget for potential default-related expenses. It is important for franchisees to understand their obligations under the Franchise Agreement and to take steps to avoid default to prevent incurring these potentially significant costs.
Many franchise agreements include similar clauses that require franchisees to cover the franchisor's legal costs in the event of a default. This is intended to protect the franchisor from losses resulting from a franchisee's failure to comply with the agreement. Prospective Sonesta Simply Suites franchisees should carefully review the default provisions in the Franchise Agreement and seek legal counsel to fully understand their obligations and potential liabilities.