Does the Sonesta Select Sonesta Essential agreement confer any goodwill or other interests in the Marks to the franchisee?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
of Performance.** You agree that we have the right to delegate the performance of any portion or all of our obligations under this Agreement to third-party designees, whether these designees are our agents or independent contractors with whom we have contracted to perform these obligations.
5. MARKS; COPYRIGHTS.
- A. Ownership and Goodwill of Marks. Your right to use the Marks is derived only from this Agreement and limited to your operating your Hotel according to this Agreement and all Brand Standards we prescribe during its term. Your or your owners' unauthorized use of the Marks is a breach of this Agreement and infringes our and our affiliates' rights in the Marks.
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Sonesta Select Sonesta Essential retains ownership of all goodwill associated with the Marks. The franchise agreement does not grant franchisees any ownership or interest in the goodwill associated with the Sonesta Select or Sonesta Essential marks.
Specifically, Sonesta Select Sonesta Essential retains all benefits and value of the goodwill, even that which accrues from the franchisee's operation of Brand Hotels. This means that while franchisees contribute to building brand recognition and positive reputation through their services, the resulting goodwill belongs solely to Sonesta Select Sonesta Essential.
This arrangement is typical in franchising, as it allows Sonesta Select Sonesta Essential to maintain consistent brand standards and protect the overall value of the brand. Upon termination or expiration of the franchise agreement, the franchisee must discontinue all use of the Marks, ensuring that all goodwill remains with Sonesta Select Sonesta Essential. This protects the brand's integrity and market position.