Can Sonesta Select Sonesta Essential enter into arrangements for programs with any other entity?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
We or our affiliates may enter into arrangements for development, marketing, operations, administrative, technical and support functions, facilities, programs, services, and personnel with any other entity, including our affiliates.
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, Sonesta Select Sonesta Essential or its affiliates have the ability to enter into arrangements with other entities for various functions related to the Brand Hotels or Network Hotels. These functions include development, marketing, operations, administrative tasks, technical support, facilities, programs, services, and personnel. These arrangements can be made with any other entity, including Sonesta Select Sonesta Essential's affiliates.
Sonesta Select Sonesta Essential or its affiliates may utilize Brand Promotion Fees, collected from Network Hotels, to fund various programs and expenses that benefit the Brand Hotels or Network Hotels. These programs include creating marketing materials, maintaining the Franchise System Website, administering advertising programs, and supporting the loyalty program. The fees are used at Sonesta Select Sonesta Essential's sole discretion, including control over creative concepts and media used in the programs.
This means that as a franchisee, you may benefit from programs and services developed through arrangements with other entities, funded in part by your Brand Promotion Fees. However, Sonesta Select Sonesta Essential has sole discretion over these arrangements and how the fees are spent, which may impact the specific benefits your franchise receives. Franchisees should be aware that Sonesta Select Sonesta Essential has broad authority in determining these arrangements and the allocation of resources.