What activities are expressly prohibited by the Sonesta Simply Suites franchise agreement?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
for a term beginning on the Opening Date (as defined in Section 2.E) and expiring 20 years from the Opening Date, unless sooner terminated under Section 14 of this Agreement (the "Term").
You agree to, at all times, faithfully, honestly, and diligently perform your obligations under this Agreement and to use your best efforts to promote your Hotel. You agree to use the Premises only for your Hotel, and, once it opens for business, to continuously operate your Hotel in accordance with this Agreement for the duration of the Term. You agree not to conduct the business of your Hotel at any location other than the Premises. You may not promote or sell any products or services, whether directly or indirectly, through or on the Internet, the World Wide Web, or any other similar proprietary or common carrier electronic delivery system, except as expressly set forth herein or as set forth in the Brand Manual, as hereinafter defined.
- B. No Exclusivity and Reservation of Rights. We do not grant any, and you have no, exclusive rights or territorial protection around your Hotel.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, franchisees are restricted from certain activities related to the operation and promotion of their hotel. Specifically, a franchisee must use the premises only for their Sonesta Simply Suites hotel and must continuously operate the hotel in accordance with the franchise agreement for the duration of the term.
The agreement explicitly prohibits franchisees from conducting the business of their hotel at any location other than the designated premises. Furthermore, franchisees are restricted from promoting or selling any products or services, whether directly or indirectly, through the Internet, the World Wide Web, or any other similar electronic delivery system, unless expressly permitted in the franchise agreement or the Brand Manual.
Additionally, opening a Sonesta Simply Suites hotel before receiving authorization from the franchisor constitutes unauthorized use of the brand's marks and a material breach of the franchise agreement. Such unauthorized opening would also obligate the franchisee to pay damages as outlined in Section 14.G(3) of the Franchise Agreement.