For Sonesta Simply Suites, can Brand Promotion Fees be used for business-to-business activities?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
We or our affiliates or other designees may use some or all of your Brand Promotion Fees, in conjunction with other Network Hotels' contributions or promotional fees, to pay for various expenses and programs that, in our view, benefit, in the short-term or the long-term, the Brand Hotels or any or all of the Network Hotels worldwide. These programs and expenditures may include but are not limited to: preparing and producing video, audio, and written materials and digital media; developing, implementing, and maintaining the Franchise System Website and related strategies; administering international, national, regional and multi-regional marketing and advertising programs (which may be based in the U.S. or elsewhere, as we determine in our sole discretion), including purchasing trade journal, direct mail, and other media advertising and using advertising, promotion, and marketing agencies and other advisors to provide assistance; administering online advertising and marketing campaigns (including search engine, social media, email, and display ad campaigns); developing and administering software, apps, and related integrations; implementing and supporting the loyalty program or other marketing programs designed to encourage the patronage of Network Hotels; supporting public relations, market research, and other advertising, promotion, and marketing activities; participating in travel industry trade shows, operating a global sales department, which activities include group sales, business-to-business, transient, leisure and specialty markets; and such other uses as we deem appropriate for the promotion of Network Hotels and further developing the reputation and image of Network Hotels. We and our affiliates have sole discretion to determine how we spend these fees, including sole control over the creative concepts, materials, endorsements, and media used in the programs, the geographic market in which we and they place any media and allocation of advertising.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, Brand Promotion Fees can be used for business-to-business activities. Sonesta Simply Suites, along with its affiliates, has established a brand promotion program for all Network Hotels. These fees can be used to pay for various programs and expenditures that benefit the Brand Hotels or any or all of the Network Hotels worldwide.
The expenditures covered by the Brand Promotion Fees include operating a global sales department, which includes business-to-business activities, group sales, transient, leisure, and specialty markets. Sonesta Simply Suites and its affiliates have sole discretion in determining how these fees are spent, including control over creative concepts, materials, endorsements, and media used in the programs, the geographic market in which media is placed, and the allocation of advertising.
Sonesta Simply Suites and its affiliates will account for Brand Promotion Fees separately from other funds, though they are not obligated to maintain them in a separate account. The brand promotion programs are not a trust, and the Brand Promotion Fees do not bear interest. The document specifies that Sonesta Simply Suites does not owe any fiduciary obligation for administering the brand promotion program. Franchisees of each brand, and company or affiliate-owned or managed Network Hotels, may pay Brand Promotion Fees at a different rate.