Can a Sonesta Simply Suites franchise be transferred if the franchisee has received a notice of termination?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN | SUMMARY |
|---|---|---|
| FRANCHISE AGREEMENT | ||
| approval of transfer | the period between your request and the effective date of the transfer, nor have you received a notice of termination from us; the transferee, its owners and its affiliates do not have an ownership interest in or perform services for a Competitive Business; you provide us all information or documents we request about the proposed transfer, the transferee, and its owners; the transferee satisfactorily completes any training, brand introduction and/or orientation program that we require at the time of the transfer; your landlord, if applicable, consents to the transfer or sublease of the Lease; the transferee agrees to meet with us at our request, either virtually or in person, to conduct an inspection of the Premises and develop a PIP for necessary upgrades, remodeling, and refurbishment of your Hotel and your Hotel's FF&E in accordance with our then current requirements and specifications for Brand Hotels, and complete the renovation work therein within 120 days after the effective date of the transfer; the transferee, at our request, signs our then current form of franchise agreement and related documents (which agreement may differ materially from the Franchise Agreement); transferee meets our qualifications then imposed on new franchisees; payment of transfer fee; you and your owners sign a general release; and you cease to identify yourself as a current or former franchisee. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 66–70)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, a franchisee cannot transfer their franchise if they have received a notice of termination from the company. The FDD outlines several conditions that must be met for a transfer to be approved.
Specifically, the franchisee must not have violated any provision of the Franchise Agreement, their Lease, or any other agreement with Sonesta Simply Suites during the 60-day period before requesting consent to the transfer and the period between the request and the effective date of the transfer. Receiving a notice of termination indicates a violation of the Franchise Agreement, thus disqualifying the franchisee from transferring the franchise.
This condition protects Sonesta Simply Suites by ensuring that franchises are transferred in good standing and that any issues or breaches of contract are resolved before a new franchisee takes over. For a prospective franchisee, this highlights the importance of adhering to the terms of the Franchise Agreement to maintain the option of transferring the franchise in the future. It also means that if a franchisee is struggling or facing termination, they may lose the ability to sell their business to a new owner.