When does the termination by Sonesta Simply Suites become effective if the hotel is condemned?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN | SUMMARY |
|---|---|---|
| FRANCHISE AGREEMENT | ||
| e. Termination by Franchisor without cause | Section 16.A | Revenue Damages (subject to state law). If your Hotel is condemned, you must give us notice at the earliest possible time. If, in our sole discretion, the taking is significant enough to render operation of your Hotel in accordance with the Brand Standards impractical, then we may terminate the Franchise Agreement on written notice, effective as of the day of the consummation of the actual taking. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 66–70)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, if the hotel is condemned, the franchisee must notify Sonesta Simply Suites as soon as possible. Sonesta Simply Suites has the option to terminate the Franchise Agreement if the condemnation significantly impacts the hotel's operation in accordance with brand standards.
If Sonesta Simply Suites chooses to terminate the agreement, it will provide written notice to the franchisee. The termination becomes effective on the day the actual taking of the property is consummated.
This means a Sonesta Simply Suites franchisee could face immediate termination of their franchise agreement if the hotel is condemned and Sonesta Simply Suites deems the impact significant enough. The franchisee should be prepared for this possibility and understand their rights and obligations in such a situation.