What are the 'Supplies' that Sonesta Select Sonesta Essential franchisees must use only approved sources for?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
Most of the equipment and supplies you must purchase to establish and operate your Hotel must meet our Brand Standards and other brand defining standards, and some must be purchased from an Approved Supplier, and in some cases, only one Approved Supplier. Currently, this includes most FF&E, OS&E, and other operating supplies such as food products. Any equipment and supplies for which we have not designated an Approved Supplier may be purchased from any supplier as long as the equipment and supplies meet Brand Standards.
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, franchisees are required to purchase certain supplies from approved suppliers to maintain consistency and quality within the brand. These supplies include most FF&E (furniture, fixtures, and equipment), OS&E (operating supplies and equipment), and other operating supplies such as food products. For any equipment and supplies where Sonesta Select Sonesta Essential has not designated an approved supplier, franchisees can purchase from any supplier, provided the equipment and supplies meet the brand's standards.
This requirement ensures that all Sonesta Select Sonesta Essential hotels maintain a uniform standard in terms of appearance, function, and performance. By mandating the use of approved suppliers for key items, Sonesta Select Sonesta Essential aims to control the quality and consistency of the guest experience across all locations. This also allows Sonesta Select Sonesta Essential to potentially leverage volume purchasing power, negotiating better pricing and terms with suppliers, which may indirectly benefit franchisees.
For a prospective franchisee, this means a portion of their initial and ongoing expenses will be directed towards approved suppliers. While this may limit their choice and potentially increase costs, it also provides a level of assurance that the products and services meet Sonesta Select Sonesta Essential's standards. Franchisees should carefully review the list of approved suppliers and understand the terms and conditions associated with these suppliers, as they may be required to sign agreements with them. It is also important to note that Sonesta Select Sonesta Essential may receive volume-based allowances from certain approved suppliers, 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.
It is critical for potential franchisees to understand that failure to comply with the approved supplier requirement constitutes a breach of the Franchise Agreement and may lead to termination. Therefore, maintaining compliance with these standards is essential for the continued operation of the franchise. Franchisees should also stay informed about any changes to the list of approved suppliers or the brand standards, as Sonesta Select Sonesta Essential reserves the right to modify these at any time.