Will Sonesta Select Sonesta Essential provide me with a list of Approved Suppliers?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
prior to each insurance policy's renewal date.
Approved Suppliers
To facilitate consistency and quality among Brand Hotels and our ability to leverage volume purchasing power, we reserve the right to approve or designate all vendors and suppliers of Supplies and services you use in developing, operating, and promoting your Hotel. We may designate a sole supplier or approved suppliers (which may be us or our affiliates) (the "Approved Suppliers") from which you will be required to purchase certain Supplies, and you will purchase those Supplies only from the Approved Suppliers when required. You may be required to sign such Approved Suppliers' form agreements for the purchase of such Supplies or services. We will provide the list of Approved Suppliers to you. We may provide your contact information to our Approved Suppliers and you may be contacted by our Approved Suppliers. We provide access to a third-party online procurement platform customized for the Network Brands, and we may require you to make certain purchases through that platform. Although we have the right to require the platform or Approved Suppliers to charge you a 2% to 3% procurement fee, which would be remitted to us, we currently do not require them to charge such fee. We currently do not maintain any other purchasing or distribution cooperatives.
None of our officers or affiliates own a material interest in any Approved Supplier. However, from time to time, our officers may own non-material interests, for investment purposes only, in publicly-held companies that are suppliers to Brand Hotels.
Neither we nor any of our affiliates currently is an Approved Supplier, although we may designate ourselves or an affiliate as an Approved Supplier (including as an exclusive supplier). You periodically may pay us for purchases from designated third parties.
If you want to purchase goods or services from an unapproved supplier, then you may submit a written request for us to approve the supplier. You must submit to us all information, specifications, and samples that we request.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 46–50)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, they will provide a list of Approved Suppliers to franchisees. Sonesta Select Sonesta Essential maintains the right to approve or designate all vendors and suppliers of supplies and services used in developing, operating, and promoting the hotel. This is to ensure consistency and quality among all Brand Hotels and to leverage volume purchasing power.
As a franchisee, you may be required to purchase certain supplies only from these Approved Suppliers. You might also need to sign agreements with these suppliers for purchasing supplies or services. Sonesta Select Sonesta Essential may also share your contact information with these Approved Suppliers, who may then contact you.
Sonesta Select Sonesta Essential provides access to a third-party online procurement platform customized for the Network Brands, and may require franchisees to make certain purchases through that platform. While they have the right to charge a 2% to 3% procurement fee through this platform, they currently do not require it. If a franchisee wants to use a supplier that is not on the approved list, they can submit a written request to Sonesta Select Sonesta Essential for approval, providing all necessary information and samples. The review process typically takes about 30 days. Sonesta Select Sonesta Essential may also inspect the supplier's facilities and require the supplier to attend brand conferences and enter into a supplier agreement.
Sonesta Select Sonesta Essential may receive volume-based allowances from certain Approved Suppliers, generally ranging from 1% to 4% of net or gross sales on items like FF&E, operating/maintenance equipment and supplies, merchant processing, services, and food and beverage products. These allowances are based on purchases made by franchisees or by Network Hotels they own or manage.