Does the reimbursement for default remedies to Sonesta Simply Suites include court costs?
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's 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. This reimbursement can include attorneys' fees, including fees for in-house attorneys, court costs, and non-legal fees reasonably incurred to protect Sonesta Simply Suites, its subsidiaries, or affiliates, or to remedy the franchisee's default. These costs are determined on a case-by-case basis as they are incurred.
This means that if Sonesta Simply Suites has to take legal action to correct a franchisee's default, the franchisee may be required to cover not only the direct costs of rectifying the issue but also the legal expenses Sonesta Simply Suites incurs. This could potentially include significant legal bills, depending on the nature and complexity of the default and the legal proceedings involved.
For a prospective Sonesta Simply Suites franchisee, this highlights the importance of adhering to the franchise agreement and avoiding default. The financial implications of a default can extend beyond the immediate issue and include substantial legal and administrative costs. Understanding the terms of the franchise agreement and maintaining open communication with Sonesta Simply Suites can help mitigate the risk of default and the associated financial burdens.