Does Sonesta Simply Suites waive any breach by exercising its rights upon an Event of Default?

According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, the brand's exercise of its rights will not constitute a waiver of any breach of the franchise agreement. This means that even if Sonesta Simply Suites takes certain actions or exercises its rights following an event of default by the franchisee, it does not give up its right to pursue other remedies for the breach.

This provision protects Sonesta Simply Suites by ensuring that it can take necessary actions to mitigate damages or protect its brand without inadvertently relinquishing its right to hold the franchisee accountable for the default. For a prospective franchisee, this means that any breach of the franchise agreement could have long-term consequences, even if Sonesta Simply Suites initially takes a less severe action.

This type of clause is common in franchise agreements, as it allows the franchisor flexibility in addressing breaches while preserving its legal rights. Franchisees should be aware that Sonesta Simply Suites retains all its rights and options, including termination, regardless of the initial steps it takes in response to a default.