Does Sonesta Select Sonesta Essential require approval of any management company selected by the franchisee?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
Any lease, management agreement, or other arrangement for operating your Hotel or any part thereof shall be subject to our prior written consent, which may be withheld in our sole discretion.
If your Hotel will be managed by a Management Company, the Management Company will sign the Management Company Joinder to this Agreement.
By doing so, the Management Company agrees that it is bound by all of the terms of this Agreement as if it were you under this Agreement and agrees that it is jointly and severally liable with you for all your obligations under this Agreement, except with respect to the actual payments of any amounts due to any third parties, our affiliates or pursuant to this Agreement.
You must obtain our prior written consent to any change of the Management Company or if you wish to engage a Management Company after the Effective Date, which consent may be withheld in our sole discretion, and will be subject to the proposed Management Company demonstrating the capability to manage your Hotel pursuant to this Agreement and the Brand Standards.
In the event we approve a change in the Management Company, the new Management Company must execute the Management Company Joinder to this Agreement.
You are solely responsible for the management, direction, and control of your Hotel, regardless of whether you retain a Management Company. We reserve the right to revoke our approval of the
Management Company if, in our discretion, the Management Company fails to remain qualified to manage your Hotel. The management agreement between you and the Management Company shall be subject and subordinate to this Agreement and, in the event of any conflict between the management agreement and this Agreement, the controlling contract shall be this Agreement.
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, if a franchisee chooses to have their hotel managed by a management company, Sonesta Select Sonesta Essential requires prior written consent for both the initial selection and any subsequent changes. This consent can be withheld at Sonesta Select Sonesta Essential's discretion. The management company must also demonstrate the capability to manage the hotel according to the franchise agreement and brand standards. If approved, the management company is required to sign a Management Company Joinder, which binds them to the terms of the Franchise Agreement as if they were the franchisee.
This joinder makes the management company jointly and severally liable for the franchisee's obligations under the agreement, excluding the actual payment of amounts due to third parties or Sonesta Select Sonesta Essential. However, the management company is responsible for ensuring that the franchisee makes these payments. Sonesta Select Sonesta Essential retains the right to revoke approval of the management company if it fails to remain qualified to manage the hotel.
Furthermore, any management agreement between the franchisee and the management company is subordinate to the Franchise Agreement. In case of any conflict between the two agreements, the Franchise Agreement takes precedence. This ensures that Sonesta Select Sonesta Essential maintains control over the standards and operation of the hotel, even when a third-party management company is involved.
This requirement ensures that Sonesta Select Sonesta Essential maintains a level of control over the operation and standards of its franchised hotels, even when a third-party management company is involved. The approval process allows Sonesta Select Sonesta Essential to assess the management company's capabilities and ensure compliance with brand standards, while the Management Company Joinder holds the management company accountable for upholding the franchise agreement.