Can Sonesta Simply Suites or its affiliates be designated as an Approved Supplier, including as an exclusive supplier?

According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, Sonesta Simply Suites retains the right to designate approved suppliers, which may include themselves or their affiliates, potentially as the sole supplier for certain items. This means that Sonesta Simply Suites franchisees may be required to purchase specific supplies exclusively from Sonesta Simply Suites or its affiliates if they are designated as approved suppliers. Franchisees may also be required to sign agreements directly with these approved suppliers.

The FDD specifies that currently, neither Sonesta Simply Suites nor its affiliates are approved suppliers. However, this could change, and franchisees should be prepared for the possibility of being required to purchase from Sonesta Simply Suites or its affiliates in the future. The FDD also states that franchisees may periodically pay Sonesta Simply Suites for purchases from designated third parties.

Sonesta Simply Suites may receive volume-based allowances from certain approved suppliers, generally ranging from 1% to 4% of net or gross sales on items such as FF&E, operating/maintenance equipment and supplies, merchant processing services, and food and beverage products. Franchisees are required to purchase signage from an approved supplier, and there may be only one approved supplier for various supplies, which may include Sonesta Simply Suites or an affiliate. Most FF&E, OS&E, and other operating supplies such as food products must meet brand standards and may need to be purchased from an approved supplier, potentially a single approved supplier.