Does the Sonesta Simply Suites Franchise Agreement mention a brand promotion fee for a Sonesta Simply Suites franchise?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
tels, Network Hotels, or such other brands, or which would constitute an act of moral turpitude. The obligations of this Section 8.O shall survive any expiration or termination of this Agreement.
9. MARKETING.
A. Brand Promotion. We and our affiliates have established a brand promotion program for all Network Hotels. We and our affiliates reserve the right to separate the brand promotion program into separate brand promotion programs for each brand or any combination of brands we and they determine, or to consolidate the brand promotion program with the brand promotion program of other brands we or our affiliates maintain so that we maintain and administer one brand promotion program for all brands or any combination of brands as we determine.
We or our affiliates or other designees may use some or all of your Brand Promotion Fees, in conjunction with other Network Hotels' contributions or promotional fees, to pay for various expenses and programs that, in our view, benefit, in the short-term or the long-term, the Brand Hotels or any or all of the Network Hotels worldwide. These programs and expenditures may include but are not limited to: preparing and producing video, audio, and written materials and digital media; developing, implementing, and maintaining the Franchise System Website and related strategies; administering international, national, regional and multi-regional marketing and advertising programs (which may be based in the U.S. or elsewhere, as we determine in our sole discretion), including purchasing trade journal, direct mail, and other media advertising and using advertising, promotion, and marketing agencies and other advisors to provide assistance; administering online advertising and marketing campaigns (including search engine, social media, email, and display ad campaigns); developing and administering software, apps, and related integrations; implementing and supporting the loyalty program or other marketing programs designed to encourage the patronage of Network Hotels; supporting public relations, market research, and other advertising, promotion, and marketing activities; participating in travel industry trade shows, operating a global sales department, which activities include group sales, business-to-business, transient, leisure and specialty markets; and such other uses as we deem appropriate for the promotion of Network Hotels and further developing the reputation and image of Network Hotels.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
Yes, according to the 2025 Sonesta Simply Suites Franchise Disclosure Document, the Franchise Agreement mentions a brand promotion program and associated fees. Sonesta Simply Suites and its affiliates have established a brand promotion program for all Network Hotels, reserving the right to manage these programs separately or in combination with other brands.
The Brand Promotion Fees collected can be used to cover various expenses and programs that Sonesta Simply Suites believes will benefit the Brand Hotels or any of the Network Hotels worldwide. These programs and expenditures may include preparing materials, maintaining the Franchise System Website, administering marketing programs, online advertising campaigns, developing software and apps, supporting the loyalty program, and participating in trade shows.
Franchisees of each brand, along with company-owned or managed Network Hotels, may pay Brand Promotion Fees at different rates. Sonesta Simply Suites also has the option to defer or reduce these fees for a franchisee or even suspend the fee payments and related programs, with 30 days' prior notice. This provides Sonesta Simply Suites with flexibility in managing the brand promotion program and adjusting fees as needed.