What is the role of the 'Principal' for a Sonesta Select Sonesta Essential franchisee that is an Entity?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
- (6) If you are an Entity, the Principal and the Management Company, as defined in Section 8.D, if applicable, are authorized, on your behalf, to deal with us in respect of all matters whatsoever which may arise in respect of this Agreement.
Any decision made by the Principal or the Management Company will be final and binding upon you, and we will be entitled to rely solely upon the decision of the Principal or Management Company in any such dealings without the necessity of any discussions with any other party named in this Agreement, and we will not be held l
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, if a Sonesta Select Sonesta Essential franchisee is a business entity, the 'Principal' is authorized to act on behalf of the franchisee in all matters related to the Franchise Agreement. This authorization extends to the Management Company if one is involved, as defined in Section 8.D of the agreement.
Any decisions made by the Principal or the Management Company are considered final and binding on the franchisee entity. Sonesta Select Sonesta Essential is entitled to rely solely on these decisions without needing to consult with any other party named in the agreement. This simplifies communication and decision-making processes between the franchisor and the franchisee.
This arrangement streamlines operations by designating specific individuals or entities to handle all interactions with Sonesta Select Sonesta Essential. It ensures that the franchisor can rely on the decisions made by the Principal or Management Company without the need for broader consultations within the franchisee's organization. This can be particularly beneficial for larger or more complex franchisee entities, as it provides a clear point of contact and decision-making authority.