Does Sonesta Simply Suites currently maintain any purchasing or distribution cooperatives?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
To facilitate consistency and quality among Brand Hotels and our ability to leverage volume purchasing power, we reserve the right to approve or designate all vendors and suppliers of Supplies and services you use in developing, operating and promoting your Hotel. We may designate a sole supplier or approved suppliers (which may be us or our affiliates) (the "Approved Suppliers") from which you will be required to purchase certain Supplies, and you will purchase those Supplies only from the Approved Suppliers when required. You may be required to sign such Approved Suppliers' form agreements for the purchase of such Supplies or services. We will provide the list of Approved Suppliers to you. We may provide your contact information to our Approved Suppliers and you may be contacted by our Approved Suppliers. We provide access to a third-party online procurement platform customized for the Network Brands, and we may require you to make certain purchases through that platform. Although we have the right to require the platform or Approved Suppliers to charge you a 2% to 3% procurement fee, which would be remitted to us, we currently do not require them to charge such fee. We currently do not maintain any other purchasing or distribution cooperatives.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 42–46)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, Sonesta Simply Suites does not currently maintain any purchasing or distribution cooperatives. However, to ensure consistency and quality among its hotels and to leverage volume purchasing power, Sonesta Simply Suites retains the right to approve or designate all vendors and suppliers of supplies and services used in developing, operating, and promoting a Sonesta Simply Suites hotel.
Sonesta Simply Suites may designate sole suppliers or approved suppliers, potentially including themselves or their affiliates, from whom franchisees are required to purchase certain supplies. Franchisees may be required to sign the approved suppliers' form agreements for these purchases. Sonesta Simply Suites will provide a list of approved suppliers to franchisees and may share franchisee contact information with these suppliers.
Sonesta Simply Suites provides access to a third-party online procurement platform customized for Network Brands, and franchisees may be required to make certain purchases through this platform. While Sonesta Simply Suites has the right to require the platform or approved suppliers to charge a 2% to 3% procurement fee, which would be remitted to them, they currently do not require such a fee. This system allows Sonesta Simply Suites to maintain standards across all locations while potentially benefiting from volume-based pricing and allowances from suppliers, which generally range from 1% to 4% of net or gross sales on items like FF&E, operating/maintenance equipment and supplies, merchant processing, services, and food and beverage products.