What 'other operations' are Sonesta Select Sonesta Essential franchisees obligated to follow?

According to the 2025 Franchise Disclosure Document, Sonesta Select Sonesta Essential retains significant rights regarding other operations. Specifically, Sonesta Select Sonesta Essential has the right to:

1. Establish and operate, and allow others to establish and operate, Brand Hotels at any location under terms and conditions they deem appropriate. This means Sonesta Select Sonesta Essential can open new locations without providing any exclusivity to existing franchisees.
2. Establish, operate, and license others to establish and operate, anywhere in the world other than the franchisee's premises, Network Hotels and other businesses that offer products and services identical or similar to those offered by Brand Hotels, using any trade names, trademarks, service marks, and commercial symbols. This indicates that Sonesta Select Sonesta Essential can operate competing businesses, even those very similar to the franchised business, as long as they are not at the same location.
3. Purchase, merge, acquire, be acquired, or affiliate with existing franchise networks, chains, or any other businesses, including competitive businesses, regardless of their location. Following such transactions, Sonesta Select Sonesta Essential can operate, franchise, or license these businesses under the Marks or any other marks, irrespective of their locations. This allows Sonesta Select Sonesta Essential to expand through acquisitions and operate those acquired businesses under any brand they choose.

These retained rights highlight that Sonesta Select Sonesta Essential franchisees do not have exclusive territories and face potential competition from other hotels or businesses operated or affiliated with the franchisor. Prospective franchisees should consider these factors carefully, as they could impact the profitability and market share of their franchised location.