Under what conditions can Sonesta Select Sonesta Essential withhold consent to a Management Company?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
- If you elect to obtain a Management Company (defined in Item 15), or at any time during the term of the Franchise Agreement change the Management Company, provide our consent to the Management Company and your agreement with the Management Company, which consent we may withhold for any reason. (Franchise Agreement, Section 8.D)
Source: Item 11 — **FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 52–64)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Sonesta Select Sonesta Essential maintains broad discretion regarding the approval of management companies. If a franchisee elects to obtain a management company or change the management company during the term of the Franchise Agreement, Sonesta Select Sonesta Essential's consent is required.
Importantly, Sonesta Select Sonesta Essential may withhold this consent for any reason. This provision grants Sonesta Select Sonesta Essential significant control over who manages a franchised hotel.
For a prospective franchisee, this means that the choice of a management company is not solely up to them. Sonesta Select Sonesta Essential has the right to veto any management company, potentially limiting the franchisee's options and ability to choose a company that best fits their needs or budget. It is important for franchisees to understand this condition and discuss potential management company options with Sonesta Select Sonesta Essential early in the process to avoid potential conflicts or delays.