Under what conditions can Sonesta Simply Suites revoke a waiver?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Waiver of Obligations. We and you may by written instrument unilaterally waive or reduce any obligation of or restriction upon the other under this Agreement, effective upon delivery of written notice to the other or another effective date stated in the notice of waiver. Any waiver granted will be without prejudice to any other rights we or you have, will be subject to continuing review, and may be revoked at any time and for any reason effective upon delivery of 10 days' prior written notice. We and you will not waive or impair any right, power, or option this Agreement reserves (including our right to demand exact compliance with every term, condition, and covenant or to declare any breach to be a default and to terminate this Agreement before its term expires) because of any custom or practice at variance with this Agreement's terms; our or your failure, refusal, or neglect to exercise any right under this Agreement or to insist upon the other's compliance with this Agreement, including any Brand Standard; our waiver of or failure to exercise any right, power, or option, whether of the same, similar, or different nature, with other Brand Hotels; the existence of franchise agreements for other Brand Hotels which contain provisions different from those contained in this Agreement; or our acceptance of any payments due from you after any breach of this Agreement. No special or restrictive legend or endorsement on any check or similar item given to us will be a waiver, compromise, settlement, or accord and satisfaction. We are authorized to remove any legend or endorsement, which then will have no effect.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, any waiver granted by Sonesta Simply Suites can be revoked at any time and for any reason. To revoke a waiver, Sonesta Simply Suites must provide the franchisee with 10 days' prior written notice.
This means that even if Sonesta Simply Suites has previously waived a certain requirement or obligation for a franchisee, they retain the right to reinstate that requirement with only a short notice period. This could impact a franchisee's operations if they have come to rely on a waived obligation, as they would need to quickly adjust to comply with the reinstated term.
Franchisees should be aware that waivers are not permanent and should factor this into their business planning. It is important to maintain open communication with Sonesta Simply Suites regarding any waivers and to understand the potential implications if a waiver is revoked. This clause provides Sonesta Simply Suites with significant flexibility in managing its franchise system, but it also introduces an element of uncertainty for franchisees.