Can Sonesta Select Sonesta Essential establish and operate Brand Hotels at any location, and on what terms?

We grant franchises to operate select service, upscale hotels that operate under the service mark Sonesta Select® Hotels and related service marks and trademarks (the "Sonesta Select Marks") or the service mark Sonesta Essential® Hotels and related service marks and trademarks (the "Sonesta Essential Marks"), and certain other related proprietary marks, including all service marks, trademarks, logos, insignia, emblems, symbols, designs, slogans, distinguishing characteristics, trade names, and all other marks or characteristics (collectively referred to as the "Marks") associated with or used to identify Brand Hotels and the products and services they offer, and similar intellectual property rights that we designate to be used in connection with Brand Hotels. Each franchise is granted under our form of Franchise Agreement, attached as Exhibit D to this disclosure document. Hotels that are authorized to operate under the Marks, the Franchise System (defined below), and the Brand Standards (defined below) are known as "Brand Hotels." If the brand designated in your Franchise Agreement is Sonesta Select, Brand Hotels refers to Sonesta Select-branded hotels; if the brand designated in your Franchise Agreement is Sonesta Essential, Brand Hotels refers to Sonesta Essential-branded hotels.

We have offered franchises under the Sonesta Select Marks since September 2021 and under the Sonesta Essential Marks since December 2022. A franchise grants you the nonexclusive right to operate either a Sonesta Select-branded hotel or a Sonesta Essential-branded hotel, as designated in the Franchise Agreement, under the applicable Marks at a specified location (your "Hotel"). You must follow the high standards we have established as the essence of Brand Hotels for the designated brand, and you may be required to make future investments.

Source: Item 12 — TERRITORY (FDD pages 64–65)