What is the Assignee's obligation regarding the ownership of the Assignee entity for Sonesta Select Sonesta Essential?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Assignee Parties each, jointly and severally, represent and warrant that: (i) Assignee is a [corporation / limited liability company] that was formed and is in good standing under the laws of the State of
Source: Item 23 — RECEIPTS (FDD pages 84–261)
What This Means (2025 FDD)
According to the 2025 FDD, in the context of a transfer of an existing franchise agreement, Sonesta Select Sonesta Essential requires that the 'Assignee' entity meet specific ownership criteria. The Assignee must be a corporation or limited liability company in good standing under the laws of the state in which it was formed.
Furthermore, the Assignee(s) must be the sole owner(s) of the Assignee entity. This means that the individual or entity acquiring the franchise rights must have complete and exclusive ownership of the company that will operate the Sonesta Select Sonesta Essential hotel.
This requirement ensures that Sonesta Select Sonesta Essential knows exactly who is in control of the franchise and that there is clear accountability for the hotel's operations. It also prevents potential conflicts of interest or disputes among multiple owners, which could negatively impact the brand and the franchise system. Prospective franchisees should ensure they meet these ownership requirements before proceeding with a franchise transfer.