What is the condition regarding the franchisee's agreement to use the Premises only for their Sonesta Simply Suites hotel?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to, at all times, faithfully, honestly, and diligently perform your obligations under this Agreement and to use your best efforts to promote your Hotel. You agree to use the Premises only for your Hotel, and, once it opens for business, to continuously operate your Hotel in accordance with this Agreement for the duration of the Term. You agree not to conduct the business of your Hotel at any location other than the Premises. You may not promote or sell any products or services, whether directly or indirectly, through or on the Internet, the World Wide Web, or any other similar proprietary or common carrier electronic delivery system, except as expressly set forth herein or as set forth in the Brand Manual, as hereinafter defined.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, franchisees must use the designated premises solely for their Sonesta Simply Suites hotel. This means the franchisee cannot operate any other type of business from the hotel location.
Once the Sonesta Simply Suites hotel opens for business, the franchisee is obligated to continuously operate the hotel in accordance with the franchise agreement for the entire term of the agreement, which is typically 20 years, unless terminated earlier. The franchisee also agrees not to conduct the hotel business at any location other than the specified premises.
Furthermore, the franchisee is restricted from promoting or selling any products or services through the Internet, the World Wide Web, or any similar electronic delivery system, unless expressly permitted in the franchise agreement or the Brand Manual. This clause ensures that the franchisee focuses on the physical location of the Sonesta Simply Suites hotel and adheres to the brand's approved marketing and sales channels.
These conditions are fairly standard in franchising, as franchisors want to maintain brand consistency and ensure that franchisees are fully dedicated to the success of their franchised location. It protects the integrity of the Sonesta Simply Suites brand and prevents franchisees from diluting their efforts across multiple ventures.