Does the Sonesta Simply Suites agreement confer any goodwill or other interests in the Marks upon the franchisee?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Your right to use the Marks is derived only from this Agreement and limited to your operating your Hotel according to this Agreement and all Brand Standards we prescribe during its term.
Your or your owners' unauthorized use of the Marks is a breach of this Agreement and infringes our and our affiliates' rights in the Marks.
You acknowledge and agree that your use of the Marks and any goodwill established by that use are exclusively for our and our affiliates' benefit and that this Agreement does not confer any goodwill or other interests in the Marks upon you (other than the right to operate your Hotel under this Agreement).
All provisions of this Agreement relating to the Marks apply to any additional proprietary trademarks and service marks we authorize you to use.
You may not at any time during or after the Term contest or assist any other person in contesting the validity of, or our and our affiliates' rights to, the Marks.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, the franchise agreement does not confer any goodwill or other interests in the Marks to the franchisee. The agreement specifies that the franchisee's right to use the Sonesta Simply Suites Marks is solely derived from the franchise agreement and is limited to operating the hotel according to the agreement and brand standards during the term of the agreement.
The FDD emphasizes that any goodwill established through the franchisee's use of the Marks is exclusively for the benefit of Sonesta Simply Suites and its affiliates. The franchisee acknowledges this and agrees that the franchise agreement does not grant them any ownership or rights to the Marks beyond the right to operate the hotel under the terms of the agreement.
Furthermore, the Sonesta Simply Suites agreement prohibits the franchisee from contesting the validity of the Marks or the rights of Sonesta Simply Suites and its affiliates to those Marks, both during and after the term of the agreement. This provision reinforces that the franchisee's use of the Marks is a licensed privilege, not an ownership right, and that Sonesta Simply Suites retains full control over its brand and associated goodwill.