Is a Sonesta Simply Suites franchisee allowed to conduct the business of the hotel at any location other than the Premises?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to, at all times, faithfully, honestly, and diligently perform your obligations under this Agreement and to use your best efforts to promote your Hotel. You agree to use the Premises only for your Hotel, and, once it opens for business, to continuously operate your Hotel in accordance with this Agreement for the duration of the Term. You agree not to conduct the business of your Hotel at any location other than the Premises. You may not promote or sell any products or services, whether directly or indirectly, through or on the Internet, the World Wide Web, or any other similar proprietary or common carrier electronic delivery system, except as expressly set forth herein or as set forth in the Brand Manual, as hereinafter defined.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, a franchisee is explicitly restricted from conducting the business of the hotel at any location other than the designated premises. The franchise agreement stipulates that the franchisee must use the premises solely for the operation of the Sonesta Simply Suites hotel. Once the hotel opens, the franchisee is obligated to continuously operate it in accordance with the franchise agreement for the entire term, which is typically 20 years.
This restriction ensures that the Sonesta Simply Suites brand maintains a consistent presence and service quality at the approved location. It prevents franchisees from diluting the brand by operating under the same name or system from different, unapproved sites. This is a common practice in franchising, as it protects the integrity of the franchise system and the investment of other franchisees who have also committed to specific locations.
Furthermore, the agreement specifies that franchisees are limited in how they can promote or sell products and services through electronic means like the internet. Any online promotion or sales must adhere to the guidelines set forth in the franchise agreement or the Brand Manual. This clause ensures that all marketing efforts align with Sonesta Simply Suites's overall brand strategy and standards, preventing franchisees from engaging in unauthorized or inconsistent online activities.