Who is responsible for paying the amounts due to Sonesta Select Sonesta Essential through the Closing Date?

According to the 2025 Franchise Disclosure Document, in the context of a franchise transfer, the Assignor is responsible for paying the amounts due to Sonesta Select Sonesta Essential through the Closing Date. Specifically, the Assignor must pay or ensure payment of amounts owed to Sonesta Select Sonesta Essential up to the closing date of the transfer, covering any outstanding balances.

This requirement ensures that Sonesta Select Sonesta Essential receives all outstanding payments before the franchise is transferred to a new owner. This protects Sonesta Select Sonesta Essential's financial interests and ensures that the franchise remains in good standing during the transfer process.

For a prospective franchisee looking to transfer their franchise, this means they must settle all accounts with Sonesta Select Sonesta Essential before the transfer can be completed. This includes any past due amounts related to specific aspects of the franchise agreement, as applicable. Franchisees should factor this into their financial planning when considering a transfer.