What is the timeframe considered 'consecutive' when determining breach of the Franchise Agreement for a Sonesta Simply Suites franchisee?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN | SUMMARY |
|---|---|---|
| FRANCHISE AGREEMENT | reimbursing us for our purchase of insurance on your behalf; failing to obtain or maintain licenses required to operate your Hotel; we learn of any information involving you or your affiliates that we determine is likely to adversely reflect upon any gaming licenses or permits held by us or our affiliates, or our or their reputation; we reasonably determine that continued operation of your Hotel will result in imminent danger to public health or safety; you violate any law, ordinance, rule or regulation and fail to correct such violation within 72 hours after receiving notice from us or another party; or any guarantor breaches his or her guaranty or fails to provide adequate assurances to us (subject to state law). Non-curable defaults also include engaging in the same noncompliance within any consecutive 24-month period, or breach of the Franchise Agreement on 3 or more separate occasions within any consecutive 12-month period, regardless of whether the defaults are cured. If your Hotel is damaged by fire or other casualty and you elect to repair or rebuild your Hotel, we may terminate the Franchise Agreement if you fail to complete the restoration in accordance with Brand Standards and recommence operations within 180 days after the casualty event occurs. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 66–70)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, a franchisee can be in breach of the Franchise Agreement under certain conditions related to non-compliance. Specifically, engaging in the same instance of noncompliance within any consecutive 24-month period constitutes a breach. Additionally, a breach occurs if the franchisee violates the Franchise Agreement on 3 or more separate occasions within any consecutive 12-month period, regardless of whether the defaults are cured.
These stipulations mean that Sonesta Simply Suites franchisees must maintain consistent compliance with the Franchise Agreement to avoid termination. The 'cure' provision is important; even if a franchisee fixes a violation, multiple violations within a year can still trigger termination.
This policy is fairly standard in franchising, as franchisors need to protect brand standards and consistency across all locations. Prospective Sonesta Simply Suites franchisees should carefully review the Franchise Agreement to understand what constitutes non-compliance and implement systems to ensure ongoing adherence to these terms. Understanding these terms is crucial for maintaining a good standing with Sonesta Simply Suites and avoiding potential termination.