Under what circumstances can Sonesta Simply Suites terminate the Franchise Agreement with advance notice?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Termination or Suspension by Us on Advance Notice. 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.
- (1) An "Event of Default" will occur if you fail to satisfy or comply with any of the obligations, requirements, conditions, or terms set forth in (i) this Agreement, the Brand Standards (including the minimum performance scores required by the Brand Manual), or any attachment to this Agreement; or (ii) any other agreement you have with us, or an Entity, relating to your Hotel, including, any computer system agreement, or any agreement to manage your Hotel. An "Event
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, Sonesta Simply Suites can terminate the Franchise Agreement with advance notice if the franchisee fails to cure an Event of Default within 30 days after receiving notice of the default. An Event of Default occurs if the franchisee fails to comply with obligations, requirements, conditions, or terms set forth in the Franchise Agreement, the Brand Standards, or any attachment to the agreement. This also includes any other agreement the franchisee has with Sonesta Simply Suites or an Entity relating to the Hotel, such as a computer system agreement or an agreement to manage the hotel.
If the Event of Default is non-monetary and cannot be cured within 30 days, Sonesta Simply Suites can terminate the agreement if the franchisee fails to diligently pursue a cure and fails to cure the default within the additional time periods specified in the notice of default. This means that franchisees must take immediate and sustained action to correct any non-monetary defaults, or risk termination.
Additionally, according to the Voice Reservation With Auto Attendant Service Agreement, Sonesta Simply Suites has the right to terminate the agreement at any time, for any reason, upon thirty (30) days' written notice to the franchisee. This agreement is related to voice reservation and auto attendant services offered through a third-party vendor. This gives Sonesta Simply Suites broad latitude to discontinue these specific services with relatively short notice, regardless of whether the franchisee is in default of the overall Franchise Agreement.