What are the possible reasons Sonesta Select Sonesta Essential might deny a successor franchise?

• B. Grant of a Successor Franchise. You agree to give us written notice of your election to acquire a successor franchise no more than one year and no less than nine months before this Agreement expires. We agree to give you written notice ("Our Notice"), not more than 90 days after we receive your notice, of our decision:
  • (1) to grant you a successor franchise;
  • (2) to grant you a successor franchise on the condition that you correct existing deficiencies of your Hotel or in your operation of your Hotel;
  • (3) to grant you a successor franchise on the condition that you transition your Hotel into a different brand concept, in accordance with Section 13.A(4) of this Agreement;
  • (4) not to grant you a successor franchise based on our determination that you and your owners have not substantially complied with this Agreement during its term, were not in full compliance with this Agreement and all Brand Standards on the date you gave us written notice of your election to acquire a successor franchise, or you have received four or more default notices during the Term; or
  • (5) not to grant you a successor franchise because we no longer grant franchises for Brand Hotels.

If applicable, Our Notice will:

• (a) describe the remodeling, expansion, improvements, or modifications required to bring your Hotel into compliance with then applicable Brand Standards for Brand Hotels (or the different brand concept, if applicable); and
• (b) state the actions you must take to correct operating deficiencies and the time period in which you must correct these deficiencies.

If we elect not to grant you a successor franchise, Our Notice will describe the reasons for our decision. If we elect to grant you a successor franchise, your right to acquire a successor franchise is subject to your full compliance with all the terms and conditions of this Agreement through the date of its expiration, in addition to your compliance with the obligations described in Our Notice.

Source: Item 22 — CONTRACTS (FDD page 84)