Are there any limitations on the non-legal fees that Sonesta Simply Suites can charge for default remedies?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS (Note 1) |
|---|---|---|---|
| Default Remedies | You shall reimburse us for all our costs and expenses we incur to remedy your default. |
Source: Item 6 — OTHER FEES (FDD pages 25–36)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, franchisees are responsible for reimbursing Sonesta Simply Suites for all costs and expenses incurred to remedy any default. The FDD does not specify any limitations or caps on these costs and expenses related to default remedies.
This means that if a Sonesta Simply Suites franchisee fails to meet their obligations under the franchise agreement, they could face uncapped financial liability for the expenses Sonesta Simply Suites incurs to correct the situation. These costs could potentially include a wide range of expenses, such as operational support, additional training, or even temporary management fees, depending on the nature of the default.
Prospective franchisees should carefully consider this open-ended liability and seek clarification from Sonesta Simply Suites regarding the types of expenses that could be incurred and how they are calculated. Understanding the potential scope of these default remedy costs is crucial for assessing the overall financial risk of investing in a Sonesta Simply Suites franchise. It would be prudent to discuss specific scenarios and potential cost implications with existing franchisees and legal counsel before signing the franchise agreement.