Can a Sonesta Simply Suites franchisee duplicate the Franchise System for use in any other business?

According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, franchisees are prohibited from duplicating the franchise system or brand standards for use in any other business or endeavor. Specifically, during the term of the franchise agreement, the franchisee, their owners, and their immediate family members are restricted from directly or indirectly appropriating, using, or duplicating the Sonesta Simply Suites Franchise System or Brand Standards, or any portion thereof, for use in any other business or endeavor without prior written consent from Sonesta Simply Suites.

This restriction is part of a broader set of covenants against competition that Sonesta Simply Suites imposes on its franchisees. These covenants aim to protect the integrity and uniqueness of the Sonesta Simply Suites brand and operational methods. The term "Competitive Business" is defined broadly to include entities that own or franchise competing hotel brands, or provide services to such entities. However, the definition excludes entities with a mere interest as a franchisee of a competitive hotel brand, a management company operating hotels on behalf of multiple brands, or a passive investor without control over business decisions.

Sonesta Simply Suites also requires franchisees to obtain similar covenants from specified personnel, including officers, directors, managers, and other employees who attend their training program or have access to confidential information. This ensures that the restrictions extend beyond the franchisee themselves to those involved in the day-to-day operations of the franchised hotel. Sonesta Simply Suites retains the right to regulate the form of agreement used for these covenants and to act as a third-party beneficiary with independent enforcement rights.

In practical terms, this means a Sonesta Simply Suites franchisee cannot take the operational methods, brand elements, or any other proprietary aspects of the Sonesta Simply Suites franchise and apply them to another business, whether it's a competing hotel or any other type of venture. This is a standard practice in franchising to protect the franchisor's intellectual property and maintain brand consistency across all franchised locations.