Does the Sonesta Select Sonesta Essential agreement confer any rights or remedies to third-party beneficiaries?

According to the 2025 FDD, the Sonesta Select Sonesta Essential franchise agreement does not confer any rights or remedies to third-party beneficiaries. The agreement explicitly states that it is not intended, nor should it be interpreted, to provide any rights or remedies to any person or legal entity other than the franchisee. This is a common provision in franchise agreements, designed to limit liability and ensure that only the parties directly involved in the agreement (the franchisor and franchisee) can enforce its terms.

This provision protects Sonesta Select Sonesta Essential from claims by individuals or entities who might believe they benefit from the franchise agreement but are not actually party to it. For example, suppliers, customers, or even employees of the franchisee would not have the right to sue Sonesta Select Sonesta Essential for any perceived breaches of the franchise agreement. This helps to maintain a clear and direct relationship between the franchisor and franchisee, simplifying dispute resolution and limiting potential legal complications.

For a prospective Sonesta Select Sonesta Essential franchisee, this means they cannot rely on the franchise agreement to protect the interests of third parties. The franchisee is solely responsible for managing relationships with their own employees, suppliers, and customers, and ensuring that their actions do not create liabilities for Sonesta Select Sonesta Essential. This underscores the importance of understanding the full scope of the franchise agreement and seeking legal counsel to clarify any potential obligations or liabilities.