What rights does the Holder reserve regarding modifications to the Note for Sonesta Simply Suites?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Holder reserves the right to modify the terms of this Note, grant extensions, renewals, releases, discharges, compositions and compromises with any party liable on this Note, with or without notice to or the consent of, or discharging or affecting the obligations of any other party liable under this instrument.
This Note is being delivered in, is intended to be performed in, shall be construed and interpreted in accordance with, and be governed by the internal laws of, the Commonwealth of Massachusetts, without regard to principles of conflict of laws.
Any legal action necessary to enforce the terms of this Note may be brought by the Holder in the Commonwealth of Massachusetts and the Maker hereby submits to the jurisdiction of any federal or state court in the Commonwealth of Massachusetts.
Any default under the terms of the Agreement or this Note shall be deemed a default of the Agreement and this Note and the Holder may pursue its remedies as available under the Agreement and this Note.
- f.
THE MAKER AND THE HOLDER HEREBY WAIVE TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO WHICH THE MAKER AND THE HOLDER MAY BE PARTIES, ARISING OUT OF OR IN ANY WAY PERTAINING TO THIS NOTE.
IT IS AGREED AND UNDERSTOOD THAT THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL CLAIMS AGAINST ALL PARTIES TO SUCH ACTIONS OR PROCEEDINGS, INCLUDING CLAIMS AGAINST PARTIES WHO ARE NOT PARTIES TO THIS NOTE.
- g.
Source: Item 23 — RECEIPTS (FDD pages 80–246)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, the Holder of the Note has significant rights regarding modifications. Specifically, the Holder reserves the right to modify the terms of the Note, grant extensions, renewals, releases, discharges, compositions, and compromises with any party liable on the Note. This can be done without notice to or the consent of, or discharging or affecting the obligations of any other party liable under the instrument.
This provision means that Sonesta Simply Suites, as the Holder, has broad discretion to alter the terms of the loan agreement. They can change interest rates, payment schedules, or even release certain parties from their obligations without needing the consent of all parties involved. This could potentially benefit the franchisee if the Holder grants more favorable terms, but it also carries the risk that the Holder could impose stricter terms or conditions.
Furthermore, the FDD states that no amendment to or modification of the Note is binding on the Holder unless it is in writing and signed by the Holder. This reinforces the Holder's control over the Note's terms, as any changes must be formally documented and approved by the Holder to be enforceable. A prospective franchisee should carefully consider the implications of these provisions and seek legal counsel to fully understand their rights and obligations under the Note.