Who is responsible for attorneys' fees associated with the preparation of the Sonesta Simply Suites agreement?

The 2025 Franchise Disclosure Document for Sonesta Simply Suites addresses attorneys' fees in the context of dispute resolution rather than the initial agreement preparation. According to the FDD, in the event of a dispute, the prevailing party is entitled to receive reasonable attorneys' fees, costs, and expert witness fees.

This means that if a Sonesta Simply Suites franchisee and franchisor end up in a legal dispute regarding the franchise agreement, the party that wins the case may have their legal expenses covered by the losing party. This could include expenses for lawyers and expert witnesses.

However, the FDD does not specify who is responsible for covering the attorneys' fees incurred during the initial preparation or negotiation of the franchise agreement. It is common practice in franchising for each party (franchisor and franchisee) to bear their own legal costs during the negotiation and preparation of the franchise agreement. A prospective franchisee should clarify this point with Sonesta Simply Suites directly to fully understand the financial implications of entering into the franchise agreement.