Does the Sonesta Simply Suites Franchise Agreement grant exclusivity to the franchisee?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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 beginning on the Opening Date (as defined in Section 2.E) and expiring 20 years from the Opening Date, unless sooner terminated under Section 14 of this Agreement (the "Term").
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, the franchise agreement does not grant exclusivity to the franchisee. The agreement specifically states that the franchise granted is limited and non-exclusive.
This means that Sonesta Simply Suites retains the right to establish other franchised or company-owned locations nearby, even in the same geographic area as a franchisee's location. A prospective franchisee should be aware that their territory is not protected, and they may face direct competition from other Sonesta Simply Suites hotels. This lack of exclusivity is a common practice in the franchise industry, allowing franchisors to expand their brand presence more rapidly.
Specifically, the grant of franchise is subject to the terms of the agreement, and it allows the franchisee to establish and operate their hotel at the specified premises. The term of the franchise begins on the opening date and extends for 20 years, unless terminated earlier according to the agreement. However, this right to operate is explicitly non-exclusive, meaning Sonesta Simply Suites can license other franchisees or operate company-owned hotels under the same brand within the same market area.