Is the appointment of the Franchisor as attorney-in-fact by the Sonesta Simply Suites Franchisee revocable?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees and acknowledges that as between Franchisor and Franchisee, upon termination or expiration of the Franchise Agreement, Franchisor shall have the sole right to and interest in the Online Presences, and Franchisee irrevocably appoints Franchisor as Franchisee's true and lawful attorney-in-fact, which appointment is coupled with an interest, to direct the Service Providers and the ISP to assign same to Franchisor, and execute such documents and take such actions as may be necessary to effectuate the assignment.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, the appointment of Sonesta Simply Suites as attorney-in-fact is irrevocable. Specifically, upon termination or expiration of the Franchise Agreement, the franchisee irrevocably appoints Sonesta Simply Suites as their attorney-in-fact. This appointment is coupled with an interest, meaning it's connected to Sonesta Simply Suites's rights regarding the online presence of the franchise.
This means that after the franchise agreement ends, Sonesta Simply Suites has the legal authority to manage the franchisee's online presence, including websites, domain names, and social media accounts, to ensure a smooth transfer of these assets. The franchisee cannot revoke this appointment, ensuring Sonesta Simply Suites can maintain brand consistency and control over its online representation.
This arrangement is designed to streamline the transfer of online assets back to Sonesta Simply Suites, preventing disputes or delays that could arise if the franchisee were unwilling to cooperate. It is fairly common in franchising for the franchisor to maintain control over brand-related online assets to ensure consistency and protect the brand's reputation.