For Sonesta Select Sonesta Essential, does the non-interference clause extend to the franchisee's affiliates?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
he personnel we specify, including officers, directors, managers, and other employees attending our training program or having access to Confidential Information. We have the right to regulate the form of agreement that you use and to be a third-party beneficiary of that agreement with independent enforcement rights.
- B. Non-Interference. You further agree that, during the Term, neither you nor any of your owners, your or your owners' affiliates, or the officers, directors, managers, employees, agents, or immediate family members of any of the foregoing, will:
- (1) interfere or attempt to interfere with our or our affiliates' relationships with any guests, franchisees, lenders, vendors or consultants; or
- (2) engage in any other activity which might injure the goodwill of the Marks or the Brand Hotels.
8. BUSINESS OPERATIONS AND BRAND STANDARDS.
- A.
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, the non-interference clause extends to the franchisee's affiliates. Specifically, during the term of the agreement, the franchisee, their owners, their owners' affiliates, or the officers, directors, managers, employees, agents, or immediate family members of any of the foregoing, are prohibited from interfering with Sonesta Select Sonesta Essential's or its affiliates' relationships with guests, franchisees, lenders, vendors, or consultants. They are also barred from engaging in any activity that might harm the goodwill of the Marks or the Brand Hotels.
This provision ensures that the franchisee and related parties do not disrupt Sonesta Select Sonesta Essential's established business relationships or damage the brand's reputation during the term of the franchise agreement. This restriction covers a broad range of individuals and entities connected to the franchisee, highlighting the importance Sonesta Select Sonesta Essential places on maintaining its network and brand integrity.
Additionally, upon termination or expiration of the franchise agreement, a similar non-interference clause applies for two years. This post-termination clause restricts the franchisee, their owners, their affiliates, and related individuals from interfering with Sonesta Select Sonesta Essential's relationships or engaging in activities that could harm the goodwill of the Marks or Brand Hotels. This extended restriction ensures that even after the franchise relationship ends, the franchisee and their related parties cannot leverage their knowledge or connections gained during the franchise term to the detriment of Sonesta Select Sonesta Essential.