Under what conditions can Sonesta Simply Suites terminate the agreement with advance notice?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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 En
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, the company can terminate the franchise agreement with advance notice under specific circumstances related to uncured defaults. Sonesta Simply Suites has the right to terminate the agreement if a franchisee fails to correct an Event of Default within 30 days after receiving a notice of default. If the default is non-monetary and cannot be cured within 30 days, Sonesta Simply Suites may terminate the agreement if the franchisee does not diligently pursue a cure within the additional time frame specified in the default notice.
An Event of Default occurs if the franchisee fails to comply with any obligations, requirements, conditions, or terms outlined in the franchise agreement, the Brand Standards (including minimum performance scores in the Brand Manual), any attachments to the agreement, or any other agreement between the franchisee and Sonesta Simply Suites. This also applies to any agreement the franchisee has with an entity controlling, controlled by, or under common control with Sonesta Simply Suites.
This means that a Sonesta Simply Suites franchisee must maintain compliance with all aspects of the franchise agreement and related standards to avoid potential termination. The franchisee must address any defaults promptly and diligently, especially those that cannot be resolved within the initial 30-day period. Failing to do so could result in the termination of the franchise agreement by Sonesta Simply Suites.