Who is the Sonesta Simply Suites agreement binding upon?

According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, the franchise agreement is binding upon the successors and permitted assignees of both parties involved. Specifically, this means that the agreement extends not only to Sonesta Simply Suites and the franchisee but also to any entities or individuals who legally take over their respective rights and obligations, assuming such assignments are permitted under the agreement.

However, the agreement cannot be assigned by the franchisee without prior written approval from Sonesta Simply Suites. This provision ensures that Sonesta Simply Suites maintains control over who operates a franchise under their brand, safeguarding brand standards and reputation. This is a common practice in franchising, as franchisors need to approve any transfer of ownership to ensure the new owner meets their qualifications and standards.

Furthermore, if the franchisee is a business entity, any direct or indirect owners with a 20% or more ownership interest must execute a guaranty, binding them personally to the obligations within the agreement. This requirement provides an additional layer of security for Sonesta Simply Suites, ensuring that individuals with significant financial stakes in the franchise are also personally committed to upholding the agreement's terms. This is particularly relevant to ensure compliance and performance.

In summary, the Sonesta Simply Suites franchise agreement is designed to bind not only the immediate parties but also their approved successors and significant owners, ensuring a comprehensive commitment to the terms and conditions outlined in the agreement.