What authority does the Principal have on behalf of the franchisee entity for Sonesta Select Sonesta Essential?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
- (6) If you are an Entity, the Principal and the Management Company, as defined in Section 8.D, if applicable, are authorized, on your behalf, to deal with us in respect of all matters whatsoever which may arise in respect of this Agreement.
Any decision made by the Principal or the Management Company will be final and binding upon you, and we will be entitled to rely solely upon the decision of the Principal or Management Company in any such dealings without the necessity of any discussions with any other party named in this Agreement, and we will not be held liable for any actions taken by you, based upon any decision or actions of the Principal or Management Company; and
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, if the Sonesta Select Sonesta Essential franchisee is a business entity, the Principal is authorized to act on behalf of the franchisee in all dealings with Sonesta Select Sonesta Essential. This authorization extends to all matters that may arise concerning the Franchise Agreement.
Any decision made by the Principal is considered final and binding on the franchisee entity. Sonesta Select Sonesta Essential is entitled to rely solely on the Principal's decisions without needing to consult with any other party named in the Franchise Agreement.
Furthermore, Sonesta Select Sonesta Essential will not be held liable for any actions taken by the franchisee based on the decisions or actions of the Principal. This arrangement streamlines communication and decision-making processes between Sonesta Select Sonesta Essential and the franchisee, ensuring that the franchisor can rely on the Principal's authority.