Under what condition is Section 17.I of the Sonesta Simply Suites Franchise Agreement deleted?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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- WAIVER OF PUNITIVE DAMAGES, JURY TRIAL, AND CLASS ACTION BAR. If and then only to the extent required by the Minnesota Franchises Law, Section 17.I of the Franchise Agreement is deleted.
Source: Item 23 — RECEIPTS (FDD pages 80–246)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, Section 17.I of the Franchise Agreement, which pertains to the waiver of punitive damages, jury trial, and class action, is deleted, but only to the extent required by the Minnesota Franchises Law. This means that if the Minnesota Franchises Law necessitates the removal of such waivers, then Section 17.I will be considered void within the context of that specific franchise agreement.
This condition is significant for prospective franchisees in Minnesota because it ensures that their rights to seek punitive damages, demand a jury trial, and participate in class action lawsuits are protected, as mandated by state law. Without this deletion, the standard franchise agreement might unduly restrict these rights, potentially disadvantaging the franchisee in dispute resolution scenarios. This provision aims to align the franchise agreement with Minnesota's legal requirements, providing a fairer balance of power between the franchisor and franchisee.
It is important for potential Sonesta Simply Suites franchisees in Minnesota to understand the implications of this clause. While the standard agreement may contain certain waivers, this specific condition ensures that those waivers do not supersede the protections afforded by Minnesota law. Franchisees should consult with legal counsel to fully grasp their rights and obligations under both the franchise agreement and the relevant state laws, ensuring they are adequately protected in any legal disputes that may arise.