Can Sonesta Simply Suites condition its consent to a proposed transfer?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Conditions for Approval of Transfer. If you (and your owners) are in full compliance with this Agreement, then you may request our consent to a proposed transfer. We will give your request reasonable consideration but may condition our consent on compliance with certain requirements, including the following:
- (1) you have paid all Royalty and Brand Promotion Fee payments, and other amounts owed to us, our affiliates, and third-party vendors and have submitted all required reports and statements:
- (2) you have not violated any provision of this Agreement, the Lease, or any other agreement with us during both the 60-day period before you requested our consent to the transfer and the period between your request and the effective date of the transfer, nor have you received a notice of termination from us;
- (3) neither the transferee nor its owners (if the transferee is an Entity) or affiliates have an ownership interest (direct or indirect) in or perform services for a Competitive Business;
- (4) you provide us all information or documents we request about the proposed transfer, the transferee, and its owners;
- (5) the transferee completes to our satisfaction any training, brand introduction and/or orientation program that we require at the time of the transfer;
- (6) your landlord, if applicable, allows you to transfer the Lease or sublease the Premises to the transferee:
- (7) the transferee agrees (if the transfer is of this Agreement) to meet with us at our request, either virtually or in person, to conduct an inspection of the Premises and develop a PIP for necessary upgrades, remodeling, and refurbishment of your Hotel and your Hotel's FF&E in
accordance with our then-current requirements and specifications for Brand Hotels, and complete the Renovation Work therein within 120 days after the effective date of the transfer;
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, Sonesta Simply Suites can place conditions on its approval of a franchise transfer. The franchisor will give reasonable consideration to a franchisee's request to transfer their franchise agreement, but may require certain conditions are met.
These conditions include ensuring all royalty and brand promotion fee payments, along with any other amounts owed to Sonesta Simply Suites, its affiliates, and third-party vendors, have been paid. Additionally, all required reports and statements must be submitted. The franchisee must also be in full compliance with the franchise agreement, the lease, and any other agreements with Sonesta Simply Suites.
Sonesta Simply Suites also stipulates that the transferee, or their owners, cannot have any ownership interest in or perform services for a competitive business. The franchisee must provide all requested information and documents about the proposed transfer and the transferee. The transferee may also be required to complete training or orientation programs to Sonesta Simply Suites' satisfaction. Furthermore, the landlord must allow the transfer of the lease or sublease of the premises to the transferee. The transferee must also agree to meet with Sonesta Simply Suites to conduct a property inspection and develop a plan for upgrades and renovations to meet the brand's current standards, with the renovation work to be completed within 120 days of the transfer.