What is the definition of 'Term' in the Sonesta Simply Suites franchise agreement?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
nditions, covenants, agreements, representations, and warranties contained in this Agreement, you and we agree as follows:
1. GRANT OF FRANCHISE; NO EXCLUSIVITY; RESERVATION OF RIGHTS.
A. Grant of Franchise. Subject to this Agreement's terms, we grant you a limited and non-exclusive franchise (the "Franchise") to establish and operate your Hotel under the Franchise System at
the Premises, and to use the Franchise System and the Brand Standards (as defined in Section 2.A) in its operation, for a term beginni
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, the 'Term' refers to the duration of the franchise agreement. The franchise agreement grants the franchisee the right to establish and operate a Sonesta Simply Suites hotel under the Franchise System at the specified premises.
The term begins on the 'Opening Date' of the hotel and extends for a period of 20 years from that date. However, the agreement may be terminated earlier under Section 14 of the Franchise Agreement, which would shorten the term.
This 20-year term is a standard duration for franchise agreements in the hotel industry. Prospective franchisees should be aware of the conditions under which the agreement can be terminated early, as outlined in Section 14, as this could significantly impact their investment and business operations. Understanding the full term and potential termination clauses is crucial for long-term planning and financial projections.