Under what condition can Sonesta Simply Suites terminate the agreement due to condemnation?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
You must immediately inform us of any proposed taking of all or any portion of your Hotel by eminent domain.
If, in our sole discretion, the taking is significant enough to render operation of your Hotel in accordance with this Agreement and the Brand Standards impractical, then we may terminate this Agreement on written notice, effective as of the day of the consummation of the actual taking (a "Condemnation Termination").
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, Sonesta Simply Suites may terminate the franchise agreement if a taking of all or any portion of the hotel occurs via eminent domain. However, the termination is not automatic. Sonesta Simply Suites has the sole discretion to determine if the taking is significant enough to make operating the hotel impractical under the agreement and brand standards.
If Sonesta Simply Suites deems the taking significant enough, they can terminate the agreement by providing written notice to the franchisee. The termination becomes effective on the date the actual taking is completed. This is referred to as a "Condemnation Termination."
In the event of a proposed taking, the franchisee is obligated to immediately inform Sonesta Simply Suites. This allows Sonesta Simply Suites to assess the situation and decide whether to exercise its right to terminate the agreement. This clause protects Sonesta Simply Suites's brand and standards by allowing them to exit situations where the hotel's operational viability is compromised due to condemnation.