Can a Sonesta Simply Suites franchisee appropriate the Franchise System for use in another business?

According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, Sonesta Simply Suites grants franchisees a limited and non-exclusive franchise to operate a hotel under the Franchise System. This means the franchisee's right to use the Sonesta Simply Suites system is specifically confined to the location and terms outlined in the franchise agreement.

The agreement explicitly states that the franchise is granted to establish and operate a hotel at a specific premises and to use the Franchise System and Brand Standards in its operation. This grant is for a term beginning on the Opening Date and expiring 20 years from that date, unless terminated earlier. The limited nature of the franchise suggests that franchisees cannot extend the use of the Sonesta Simply Suites system beyond the scope defined in the agreement.

Furthermore, the FDD emphasizes Sonesta Simply Suites's control over the Franchise System, including the Brand Standards and the Franchise System Website. Franchisees are restricted from using online presences related to the Brand Hotels or Network Hotels without prior approval. This level of control indicates that Sonesta Simply Suites intends to maintain the integrity and exclusivity of its system, preventing franchisees from independently applying it to other ventures.

In practical terms, a Sonesta Simply Suites franchisee is not permitted to take the established Franchise System and use it in a separate, unauthorized business. The franchise agreement strictly governs the use of the system, trademarks, and brand standards to the specific franchised location. Any deviation from these terms would likely constitute a breach of contract, potentially leading to termination of the franchise agreement.