Does Sonesta Simply Suites waiving a breach by exercising its rights after an Event of Default?

According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, the brand's exercise of its rights after an event of default does 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 a franchisee's failure to comply with the agreement, it does not forfeit its right to later enforce the breached term or condition.

This provision protects Sonesta Simply Suites by ensuring that it can take necessary actions to mitigate damages or address a franchisee's default without unintentionally relinquishing its ability to pursue further remedies, including termination of the agreement, if the breach is not cured. For a prospective franchisee, this highlights the importance of strict compliance with all terms and conditions of the franchise agreement, as any breach could lead to consequences regardless of whether Sonesta Simply Suites initially takes action or not.

This type of clause is common in franchise agreements to protect the franchisor's rights. It allows Sonesta Simply Suites to address defaults pragmatically without creating a situation where their actions could be interpreted as condoning the breach or preventing them from taking future action. Franchisees should be aware that Sonesta Simply Suites retains all its rights and options under the agreement, even if it initially chooses a less severe course of action following a default.