Are there any limitations on the actions that Sonesta Simply Suites can take to resolve franchisee conflicts?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, Minn. Stat. Sec 80C.21 and Minn. Rule 2860.4400J prohibit us, except in certain specified cases, from requiring litigation to be conducted outside Minnesota.
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- WAIVER OF PUNITIVE DAMAGES, JURY TRIAL, AND CLASS ACTION BAR. If and then only to the extent required by the Minnesota Franchises Law, Section 17.I of the Franchise Agreement is deleted.
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- INJUNCTIVE RELIEF. Section 17.J of the Franchise Agreement is deleted and replaced with the following:
- J. Injunctive Relief. Nothing in this Agreement, including the provisions of Section 17.F, bars our right to seek specific performance of the provisions of this Agreement and injunctive relief against threatened or actual conduct that will cause us, the Marks and/or the Franchise System loss or damage, under customary equity rules, including applicable rules for obtaining restraining orders and temporary or preliminary injunctions (subject to our obligation to arbitrate the underlying claim if required by Section 17.F). You agree that we may seek such injunctive relief in addition to such further or other relief as may be available at law or in equity. You agree that your only remedy if an injunction is entered against you will be the dissolution of that injunction, if warranted, upon due hearing (all claims for damages by injunction being expressly waived hereby).
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- LIMITATIONS OF CLAIMS. The following is added to the end of Section 17.L of the Franchise Agreement:
Minnesota law provides that no action may be commenced under Minn. Stat Sect. 80C.17 more than 3 years after the cause of action accrues.
Source: Item 1 — of this disclosure document for all Network Brands and do not maintain physically separate offices and training facilities for each Network Brand. While we do not anticipate conflicts between franchisees of different brands, we will analyze any future conflict and take action (if any) that we deem appropriate. (FDD page 62)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites FDD, there are some limitations regarding conflict resolution, particularly concerning litigation and injunctive relief. Specifically, Minnesota law includes certain stipulations that affect how Sonesta Simply Suites can pursue litigation with franchisees.
For instance, Minnesota Statute Section 80C.21 and Minnesota Rule 2860.4400J, prevent Sonesta Simply Suites from requiring litigation to occur outside of Minnesota, except under specific circumstances. Additionally, if required by the Minnesota Franchises Law, Section 17.I of the Franchise Agreement, which likely pertains to a waiver of punitive damages, jury trial, and class action bar, may be deleted.
Furthermore, while Sonesta Simply Suites retains the right to seek specific performance and injunctive relief to protect its brand and franchise system, this right is subject to the obligation to arbitrate the underlying claim if required by Section 17.F. The FDD also notes that Minnesota law dictates that no action may be commenced under Minn. Stat Sect. 80C.17 more than 3 years after the cause of action accrues. These limitations are specific to franchisees operating under Minnesota law, indicating that conflict resolution processes and legal actions can vary based on the franchisee's location.