Does the Sonesta Simply Suites Franchise Agreement mention a loyalty program?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
D. Loyalty Program. We and our affiliates may administer and manage loyalty programs that will provide participating guests of your Hotel with certain rewards or benefits when staying at your Hotel. Such loyalty programs may apply specifically for Brand Hotels or to any or all Network Hotels. Currently, Brand Hotels participate in our loyalty program referred to as Sonesta Travel Pass. We and our affiliates may modify or discontinue any loyalty program at any time at our and their sole discretion. You must participate in and honor the terms of any and all loyalty, discount, or other promotional program applicable to Brand Hotels and pay all applicable fees or charges associated with such programs (including any fees assessed by us and our affiliates, room discounts given to guests, or rewards provided to guests, that are applicable to your Hotel) that we and our affiliates offer to the public on your behalf and any room rate quoted to any guest at the time the guest makes an advance reservation. You agree that you will take all action necessary to participate in any loyalty program, and that you will grant us and our affiliates all necessary rights in and to any photographs, video and/or other marketing materials that we or they may require to reasonably undertake such programs on behalf of your Hotel.
We charge a loyalty program fee for your participation in the Sonesta Travel Pass program in the amount of 2.5% of your Hotel's Qualified Revenue (defined below) from guests participating in the Sonesta Travel Pass program, payable at the same time and in the same manner as Royalty Fees. We reserve the right, at any time, upon notice to you, to increase the loyalty program fee; provided, that the loyalty program fee that we impose shall not exceed 4.5% of your Hotel's Qualified Revenue.
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 does address the brand's loyalty program. Specifically, Sonesta Simply Suites franchisees are required to participate in any loyalty programs applicable to Brand Hotels, including the "Sonesta Travel Pass" program.
As a participant in the Sonesta Travel Pass program, franchisees must honor the terms of the loyalty program and pay any associated fees or charges. These fees may include assessments by Sonesta Simply Suites and its affiliates, room discounts given to guests, or rewards provided to guests that are applicable to the franchisee's hotel. Franchisees must also grant Sonesta Simply Suites and its affiliates the necessary rights to use photographs, videos, and other marketing materials to undertake such programs on behalf of the hotel.
Sonesta Simply Suites has the right to modify or discontinue any loyalty program at any time at their sole discretion. The FDD also states that franchisees will be charged a loyalty program fee for participation in the Sonesta Travel Pass program. This fee is 2.5% of the Hotel's Qualified Revenue from guests participating in the Sonesta Travel Pass program, payable at the same time and in the same manner as Royalty Fees. However, Sonesta Simply Suites reserves the right to increase the loyalty program fee up to a maximum of 4.5% of the Hotel's Qualified Revenue with notice to the franchisee.