Is there a jury trial waiver associated with the Note for Sonesta Simply Suites?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 23 — RECEIPTS (FDD pages 80–246)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, the Maker and the Holder, as parties to the Note, waive their rights to a jury trial. This waiver applies to any action or proceeding arising out of or pertaining to the Note. The waiver extends to all claims against all parties involved in such actions or proceedings, including those not directly party to the Note.
In practical terms, this means that if a Sonesta Simply Suites franchisee (as the Maker) has a dispute with the Holder (which could be Sonesta RL Hotels Franchising Inc. or a subsequent holder of the Note) related to the Note, both parties agree to resolve the issue through a judge rather than a jury. This can potentially expedite the legal process and reduce costs, as jury trials tend to be more complex and time-consuming.
However, it also means the franchisee gives up the right to have their case decided by a jury of their peers, which some may see as a disadvantage. It is important for a prospective franchisee to fully understand the implications of this waiver and how it might affect their legal rights in the event of a dispute related to the Note.
This type of waiver is relatively common in franchise agreements and related financial documents. Franchisees should carefully consider the potential impact of waiving their right to a jury trial and consult with legal counsel if they have any concerns.