When does the Collateral Assignment become effective for a Sonesta Select Sonesta Essential franchise?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
cept (check the applicable concept): Sonesta Select Hotel | Sonesta Essential Hotel | | | 5. | Approved number of Guest Rooms: | | | | 6. | Construction Work Commencement Date (if applicable): | | | | 7. | Construction Work Completion Date (if applicable): | | | | 8. | Opening Date: | | | | By: Name: | SONESTA RL HOTELS FRANCHISING INC. | [Franchisee Name] By: Name: | | | Title: | | Title: By: Name: Title: By: Name: Title: | | | | | By: Name: Title: | |
EXHIBIT B
Collateral Assignment of Online Presences
| THIS COLLATERAL ASSIGNMENT ("Assignment") is entered into and made effective as of the |
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| Effective Date of the Franchise Agreement, in accordance with the terms of the Franchise Agreement |
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, the Collateral Assignment becomes effective as of the Effective Date of the Franchise Agreement. This assignment is made in accordance with the terms outlined in the Franchise Agreement between Sonesta RL Hotels Franchising Inc. (the Franchisor) and the Franchisee. The agreement grants the franchisee the right to own and operate either a Sonesta Select Hotel or a Sonesta Essential Hotel at a specified Hotel Premises.
This Collateral Assignment is related to the franchisee's online presence. Sonesta Select Sonesta Essential is assigned all websites, domain names, homepages, e-mail addresses, social media accounts, usernames, and other online presence associated with the franchisor's trademarks and service marks. This assignment is specifically for collateral purposes, meaning Sonesta Select Sonesta Essential generally has no obligations unless they notify the service providers managing the online presences and the franchisee's internet service provider to implement the assignment.
Upon the termination or expiration of the Franchise Agreement, Sonesta Select Sonesta Essential has the right to fully effectuate the assignment of these online presences. At that point, the franchisee loses all rights, titles, and interests in the online presences but remains responsible for any outstanding fees owed to the service providers and ISP up to the effective date of the assignment. The franchisee also agrees to appoint Sonesta Select Sonesta Essential as their attorney-in-fact to manage the assignment process with service providers and ISPs, ensuring a smooth transfer of online assets back to the franchisor upon the end of the franchise term.