Does the Sonesta Simply Suites agreement require franchisees to obtain similar covenants from managers?

According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, franchisees are required to obtain non-compete covenants from specific personnel. These personnel include officers, directors, managers, and other employees who attend Sonesta Simply Suites' training program or have access to confidential information.

This requirement ensures that individuals with significant knowledge of Sonesta Simply Suites' operations and confidential information are restricted from engaging in competitive activities during their tenure and potentially afterward. The franchisee must ensure these individuals agree to not own, operate, or be involved with a competing business.

Sonesta Simply Suites retains the right to regulate the form of agreement used to obtain these covenants and can act as a third-party beneficiary with independent enforcement rights. This allows Sonesta Simply Suites to directly enforce these non-compete agreements against the specified personnel, providing an additional layer of protection for its business model and confidential information.

This is a fairly standard practice in franchising, as franchisors seek to protect their systems and trade secrets. Prospective Sonesta Simply Suites franchisees should understand the scope of these required covenants and ensure they implement compliant agreements with their personnel to avoid potential breaches of the franchise agreement.