Under what circumstances can Sonesta Simply Suites seek injunctive relief against a franchisee?

According to the 2025 Franchise Disclosure Document, Sonesta Simply Suites retains the right to seek specific performance and injunctive relief against a franchisee under certain conditions. Specifically, Sonesta Simply Suites can pursue injunctive relief against any threatened or actual conduct by a franchisee that could cause loss or damage to Sonesta Simply Suites itself, its trademarks, or the broader Sonesta Simply Suites Franchise System. This is a standard provision in franchise agreements, allowing the franchisor to protect its brand and system standards.

This right to seek injunctive relief is governed by customary equity rules, including those applicable to obtaining restraining orders and temporary or preliminary injunctions. This means that Sonesta Simply Suites must demonstrate to a court that there is a likelihood of irreparable harm if the injunction is not granted. The FDD states that Sonesta Simply Suites can seek such relief from any court of competent jurisdiction, in addition to any other legal or equitable remedies available.

An important condition outlined in the FDD is that the franchisee agrees Sonesta Simply Suites will not be required to post a bond to obtain injunctive relief. Additionally, the franchisee's sole remedy, if an injunction is entered against them, is to seek the dissolution of that injunction if warranted after a due hearing. The franchisee expressly waives any claim for damages caused by such an injunction. This clause is significant because it limits the franchisee's recourse in the event of an injunction, potentially increasing the risk to the franchisee if an injunction is wrongly issued.