What rights does Sonesta Select Sonesta Essential have regarding reservations after a termination date has been established?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that once a termination or expiration date for this Agreement has been established in accordance with the provisions of this Agreement, we may stop accepting reservations through the Central Reservation System for any persons seeking to make a reservation for a stay on any date on or after the Termination or expiration of this Agreement. In addition, when this Agreement terminates or expires for any reason, we have the right to contact those individuals or entities who have reserved rooms with you through the Central Reservation System to inform them that your lodging facility is no longer part of the Franchise System. We further have the right to inform those guests of other facilities within the Franchise System that are near your Hotel if the guests prefer to change their reservations. You agree that the exercise of our rights under this Section will not constitute interference with your contractual or business relationship.
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, once a termination or expiration date has been set for the Franchise Agreement, Sonesta Select Sonesta Essential has the right to stop accepting reservations through the Central Reservation System for any stays on or after the termination or expiration date. This means that franchisees will no longer be able to rely on the central system to book future reservations once their agreement is ending.
Additionally, Sonesta Select Sonesta Essential can contact individuals or entities who have booked rooms through the Central Reservation System to inform them that the lodging facility is no longer part of the franchise system. They can also suggest alternative facilities within the Sonesta Select Sonesta Essential system that are near the hotel if guests wish to change their reservations.
Sonesta Select Sonesta Essential states that exercising these rights does not constitute interference with the franchisee's contractual or business relationships. However, franchisees are still obligated to honor any reservations, including group bookings, made before the termination date at the rates and terms established when the reservations were made, and they must pay any related travel agent commissions.