Can Sonesta Simply Suites or its affiliates be the only Approved Supplier for certain supplies?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
insurance policy's renewal date.
Approved Suppliers
To facilitate consistency and quality among Brand Hotels and our ability to leverage volume purchasing power, we reserve the right to approve or designate all vendors and suppliers of Supplies and services you use in developing, operating and promoting your Hotel. We may designate a sole supplier or approved suppliers (which may be us or our affiliates) (the "Approved Suppliers") from which you will be required to purchase certain Supplies, and you will purchase those Supplies only from the Approved Suppliers when required. You may be required to sign such Approved Suppliers' form agreements for the purchase of such Supplies or services. We will provide the list of Approved Suppliers to you. We may provide your contact information to our Approved Suppliers and you may be contacted by our Approved Suppliers. We provide access to a third-party online procurement platform customized for the Network Brands, and we may require you to make certain purchases through that platform. Although we have the right to require the platform or Approved Suppliers to charge you a 2% to 3% procurement fee, which would be remitted to us, we currently do not require them to charge such fee. We currently do not maintain any other purchasing or distribution cooperatives.
None of our officers or affiliates own a material interest in any Approved Supplier. However, from time to time, our officers may own non-material interests, for investment purposes only, in publicly-held companies that are suppliers to Brand Hotels.
Neither we nor any of our affiliates currently is an Approved Supplier, although we may designate ourselves or an affiliate as an Approved Supplier (including as an exclusive supplier). You periodically may pay us for purchases from designated third parties.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 42–46)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, Sonesta Simply Suites reserves the right to designate a sole supplier or approved suppliers, which may include themselves or their affiliates, for certain supplies. Franchisees may be required to purchase these specified supplies exclusively from these designated Approved Suppliers.
This means that as a Sonesta Simply Suites franchisee, you might be obligated to buy certain items, such as signage, FF&E (furniture, fixtures, and equipment), and OS&E (operating supplies and equipment), directly from Sonesta Simply Suites or one of its affiliates if they are designated as the sole Approved Supplier. This requirement is in place to ensure consistency and quality across all Sonesta Simply Suites locations and to leverage volume purchasing power.
While neither Sonesta Simply Suites nor its affiliates are currently Approved Suppliers, the FDD states that they may choose to designate themselves or an affiliate as an exclusive supplier in the future. If a franchisee wishes to use a different supplier, they can submit a written request for approval, including all necessary information, specifications, and samples. Sonesta Simply Suites will then review the request, a process that typically takes 30 days, although they are not obligated to respond within a specific timeframe. Ultimately, franchisees must comply with the Brand Standards, and failure to purchase from approved suppliers when required can result in a breach of the Franchise Agreement.