What is the Sonesta Select Sonesta Essential franchisee's responsibility regarding the selection of a Management Company?
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
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, a Sonesta Select Sonesta Essential franchisee is ultimately responsible for the management, direction, and control of their hotel, regardless of whether they hire a management company. Any agreement to operate the hotel requires Sonesta Select Sonesta Essential's prior written consent, which they may withhold at their discretion.
If a franchisee chooses to use a management company, that company must sign a Management Company Joinder, binding them to the terms of the Franchise Agreement as if they were the franchisee. This joinder also makes the management company jointly and severally liable for the franchisee's obligations, excluding the actual payment of amounts due to third parties or Sonesta Select Sonesta Essential and its affiliates. However, the management company is obligated to ensure these payments are made.
The franchisee must also obtain Sonesta Select Sonesta Essential's prior written consent for any change of management company or if they decide to engage one after the franchise agreement's effective date. This consent is contingent upon the proposed management company's ability to manage the hotel according to the agreement and brand standards. If a change in management company is approved, the new company must also execute the Management Company Joinder.
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 subject to and subordinate to the Franchise Agreement.