What is the obligation regarding keeping the provisions of the Note for Sonesta Select Sonesta Essential?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to keep the provisions of this Note in strict confidence and will not disclose them to any persons other than your directors, officers, partners, employees agents and advisors that have a need to know.
Source: Item 23 — RECEIPTS (FDD pages 84–261)
What This Means (2025 FDD)
According to the 2025 Sonesta Select Sonesta Essential FDD, franchisees must keep the provisions of the Note in strict confidence. This means that franchisees are not allowed to disclose the terms of the Note to any third parties.
The only exceptions to this confidentiality requirement are the franchisee's directors, officers, partners, employees, agents, and advisors who have a need to know the information. This exception allows the franchisee to share the information with those who are directly involved in the business and need to be aware of the terms of the Note to perform their duties effectively.
This confidentiality clause is a standard practice in franchising to protect the franchisor's proprietary information and maintain a competitive advantage. Franchisees should ensure that all individuals who have access to the Note understand the importance of keeping the information confidential to avoid any potential legal or financial repercussions.