Who is the Sonesta Select Sonesta Essential franchise agreement binding upon?

According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, the franchise agreement is binding upon the successors and permitted assigns of the parties involved. Specifically, the agreement inures to the benefit of and is binding upon these successors and assigns. However, the franchisee cannot assign the agreement without obtaining prior written approval from Sonesta Select Sonesta Essential.

This clause ensures that if either Sonesta Select Sonesta Essential or the franchisee undergoes a change in ownership or structure, the terms of the franchise agreement remain in effect for the new entity. For a franchisee, this means that if they sell their business, the new owner must be approved by Sonesta Select Sonesta Essential and will be bound by the existing franchise agreement.

The requirement for written approval from Sonesta Select Sonesta Essential before a franchisee can assign the agreement gives Sonesta Select Sonesta Essential control over who operates a franchise under their brand. This is a common practice in franchising, allowing the franchisor to maintain brand standards and ensure that new franchisees meet their qualifications. This provision protects Sonesta Select Sonesta Essential's interests by ensuring that any transfer of the franchise is to a qualified and approved party.