What criteria must a proposed Management Company meet to be approved by Sonesta Select Sonesta Essential?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
Any lease, management agreement, or other arrangement for operating your Hotel or any part thereof shall be subject to our prior written consent, which may be withheld in our sole discretion.
If your Hotel will be managed by a Management Company, the Management Company will sign the Management Company Joinder to this Agreement.
By doing so, the Management Company agrees that it is bound by all of the terms of this Agreement as if it were you under this Agreement and agrees that it is jointly and severally liable with you for all your obligations under this Agreement, except with respect to the actual payments of any amounts due to any third parties, our affiliates or pursuant to this Agreement.
You must obtain our prior written consent to any change of the Management Company or if you wish to engage a Management Company after the Effective Date, which consent may be withheld in our sole discretion, and will be subject to the proposed Management Company demonstrating the capability to manage your Hotel pursuant to this Agreement and the Brand Standards.
In the event we approve a change in the Management Company, the new Management Company must execute the Management Company Joinder to this Agreement.
You are solely responsible for the management, direction, and control of your Hotel, regardless of whether you retain a Management Company. We reserve the right to revoke our approval of the
Management Company if, in our discretion, the Management Company fails to remain qualified to manage your Hotel. The management agreement between you and the Management Company shall be subject and subordinate to this Agreement and, in the event of any conflict between the management agreement and this Agreement, the controlling contract shall be this Agreement.
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, if a franchisee chooses to have their hotel managed by a Management Company, Sonesta Select Sonesta Essential requires prior written consent for any lease, management agreement, or other operating arrangement. This consent can be withheld at Sonesta Select Sonesta Essential's discretion.
To get approval for a Management Company, the proposed company must demonstrate the capability to manage the hotel according to the Franchise Agreement and Brand Standards. If a change in the Management Company is approved, the new company must execute the Management Company Joinder to the Franchise Agreement, binding them to the agreement's terms as if they were the franchisee. The Management Company also agrees that it is jointly and severally liable with you for all your obligations under this Agreement, except with respect to the actual payments of any amounts due to any third parties, our affiliates or pursuant to this Agreement.
Sonesta Select Sonesta Essential retains the right to revoke approval of a Management Company if it fails to remain qualified to manage the hotel, in Sonesta Select Sonesta Essential's discretion. The management agreement between the franchisee and the Management Company is subordinate to the Franchise Agreement; in case of conflict, the Franchise Agreement prevails. The franchisee remains solely responsible for the hotel's management, direction, and control, regardless of whether a Management Company is retained.