Can Sonesta Select Sonesta Essential withhold consent to a Management Company and agreement?
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 Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, Sonesta Select Sonesta Essential has the right to withhold consent regarding a franchisee's choice of a Management Company. Specifically, if a franchisee elects to obtain a Management Company or change the Management Company at any time during the term of the Franchise Agreement, they must obtain Sonesta Select Sonesta Essential's consent to both the Management Company itself and the agreement with that company.
Importantly, Sonesta Select Sonesta Essential may withhold this consent for any reason. This gives Sonesta Select Sonesta Essential broad discretion over who manages a franchised location.
For a prospective franchisee, this means that the choice of a Management Company is not solely their decision. Sonesta Select Sonesta Essential has the power to veto a franchisee's preferred Management Company, potentially requiring the franchisee to find an alternative that is acceptable to Sonesta Select Sonesta Essential. This could impact the franchisee's operational costs, efficiency, and overall profitability, depending on the terms and capabilities of the approved Management Company.