factual

Does the reimbursement for default remedies to Sonesta Simply Suites include non-legal fees?

Sonesta_Simply_Suites Franchise · 2025 FDD

Answer 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. This reimbursement extends beyond just legal fees.

The FDD specifies that these expenses may include attorneys' fees, encompassing fees for both outside and in-house attorneys, as well as court costs. Importantly, the reimbursement also covers non-legal fees that are reasonably incurred to protect Sonesta Simply Suites, its subsidiaries, or affiliates, or to remedy the franchisee's default.

This means that a Sonesta Simply Suites franchisee could be responsible for a wide range of expenses beyond typical legal costs if they fail to meet the obligations outlined in the franchise agreement. These non-legal fees must be reasonably incurred, but the FDD does not provide a specific list of what these fees might include. A prospective franchisee should seek clarification from Sonesta Simply Suites regarding what specific types of 'non-legal fees' they might be responsible for in the event of a default.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.