If a Sonesta Select Sonesta Essential franchisee is an entity, who can manage the hotel?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
N. Employees, Agents, and Independent Contractors. You acknowledge and agree that you are solely responsible for all decisions relating to employees, agents, and independent contractors that
you may hire or engage to assist in the operation of your Hotel. You agree that any employee, agent or independent contractor that you hire or engage will be your or the Management Company's employee, agent, or independent contractor, and not our employee, agent, or independent contractor. You also agree that you are exclusively responsible for the terms and conditions of employment of your employees, including recruiting, hiring, firing, training, compensation, work hours and schedules, work assignments, safety and security, discipline, and supervision. You agree to manage the employment functions of your Hotel in compliance with applicable federal, state, and local employment laws. You must notify all your employees in writing that they are your employees and not our employees, and you must never contend otherwise.
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Sonesta Select Sonesta Essential indicates that if a franchisee hires or engages employees, agents, or independent contractors to assist in the operation of their hotel, those individuals will be considered employees, agents, or independent contractors of either the franchisee or the Management Company, and not of Sonesta Select Sonesta Essential. The franchisee is responsible for the terms and conditions of employment, including hiring, firing, training, compensation, and compliance with employment laws.
This means that as a Sonesta Select Sonesta Essential franchisee, you have the autonomy to manage your staff and hotel operations, but you also bear the full responsibility for all employment-related matters. You must also notify your employees in writing that they are your employees and not Sonesta Select Sonesta Essential's employees.
This arrangement is typical in franchising, where franchisees operate as independent business owners while adhering to the franchisor's brand standards and operational guidelines. It's crucial for prospective franchisees to understand their obligations as employers and to ensure compliance with all applicable laws.