What is the timeframe for Sonesta Simply Suites to provide notice of default before terminating the agreement?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Except in the case of an immediate termination as provided in Section 14.B below, we have the right to terminate this Agreement if you fail to cure an Event of Default within 30 days after we furnish notice of default to you based on the Event of Default, or, if there is a non-monetary Event of Default that is incapable of cure within 30 days, if you fail to diligently pursue cure of such default and fail to cure the default within the additional time periods we set forth in the notice of default.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, the timeframe for notice of default before termination depends on the nature of the default. Generally, Sonesta Simply Suites will provide a franchisee 30 days to cure an event of default after furnishing notice. However, if the default is non-monetary and cannot be cured within 30 days, Sonesta Simply Suites will allow additional time to diligently pursue a cure, as specified in the notice of default.
There are exceptions where Sonesta Simply Suites can terminate the agreement immediately. This includes instances where a franchisee fails to pay amounts due and does not correct the failure within ten days after written notice. Immediate termination can also occur if a franchisee engages in the same noncompliance after curing an event of default within a 24-month period, or fails to comply with the agreement on three or more separate occasions within a 12-month period, regardless of whether the noncompliance is corrected after notice.
Additionally, Sonesta Simply Suites can terminate immediately if the franchisee violates any law, ordinance, rule, or regulation of a governmental agency in connection with the operation of their hotel and fails to correct such violation within 72 hours after receiving notice from Sonesta Simply Suites or any other party. These stipulations highlight the importance of adhering to the franchise agreement and all applicable laws to avoid potential termination.