Am I required to cooperate fully with Sonesta Simply Suites during an inspection of my Sonesta Simply Suites hotel?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to, and your staff must, cooperate fully with our representatives and independent accountants in any examination.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, franchisees are required to cooperate fully with Sonesta Simply Suites during inspections of their hotels. Sonesta Simply Suites, along with its agents or representatives, has the right to inspect a franchisee's hotel at any time and without prior notice to ensure compliance with the Franchise Agreement and Brand Standards. This includes the franchisee and their staff cooperating fully with representatives and independent accountants during any examination of the hotel's bookkeeping and accounting records.
Sonesta Simply Suites's inspection rights extend to various aspects of the hotel's operation. They may photograph the hotel, observe and videotape its operation, remove samples of products and supplies, inspect the computer system, interview personnel and customers, and inspect and copy books, records, and documents. They can also contract with third parties to conduct mystery-shopper visits or other market-research testing and quality assurance inspections.
If an examination reveals an understatement of Gross Rooms Revenue, the franchisee must pay the Royalty and Brand Promotion Fee due on the understated amount, plus service charges and interest. Additionally, if the understatement exceeds two percent of the reported amount, or if the examination was necessary due to the franchisee's failure to provide required reports or information, the franchisee must reimburse Sonesta Simply Suites for the costs of the examination, including attorney and accountant fees, and travel expenses.