What is the Sonesta Simply Suites Franchisee irrevocably appointing the Franchisor as?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees and acknowledges that as between Franchisor and Franchisee, upon termination or expiration of the Franchise Agreement, Franchisor shall have the sole right to and interest in the Online Presences, and Franchisee irrevocably appoints Franchisor as Franchisee's true and lawful attorney-in-fact, which appointment is coupled with an interest, to direct the Service Providers and the ISP to assign same to Franchisor, and execute such documents and take such actions as may be necessary to effectuate the assignment. Upon such event, Franchisee shall immediately notify the Service Providers and the ISP to assign the Online Presences to Franchisor. If Franchisee fails to promptly direct the Service Providers and the ISP to assign the Online Presences to Franchisor, Franchisor shall direct the Service Providers and the ISP to effectuate the assignment contemplated hereunder to Franchisor. The parties agree that the Service Providers and the ISP may accept Franchisor's written direction, the Franchise Agreement, or this Assignment as conclusive proof of Franchisor's exclusive rights in and to the Online Presences upon such termination or expiration and that such assignment shall be made automatically and effective immediately upon each Service Provider's and ISP's receipt of such notice from Franchisor or Franchisee. The parties further agree that if the Service Provider or the ISP requires that the parties execute the Service Provider's or the ISP's assignment forms or other documentation at the time of termination or expiration of the Franchise Agreement, Franchisor's execution of such forms or documentation on behalf of Franchisee shall effectuate Franchisee's consent and agreement to the assignment. The parties agree that at any time after the date hereof they will perform such acts and execute and deliver such documents as may be necessary to assist in or accomplish the assignment described herein upon termination or expiration of the Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, the franchisee irrevocably appoints the franchisor as their true and lawful attorney-in-fact regarding the management and assignment of online presences. This appointment is specifically tied to the termination or expiration of the franchise agreement.
This means that upon the end of the franchise term, Sonesta Simply Suites has the sole right to manage and control the franchisee's online presence, including directing service providers and internet service providers (ISPs) to assign these online assets to the franchisor. The franchisee essentially gives Sonesta Simply Suites the power to act on their behalf to transfer ownership and control of these online entities.
This transfer includes the authority to execute documents and take necessary actions to complete the assignment. The franchisee is obligated to notify service providers and ISPs of this arrangement. If the franchisee fails to do so promptly, Sonesta Simply Suites is authorized to directly instruct these providers to make the assignment. The service providers and ISPs are permitted to accept written direction from Sonesta Simply Suites, the franchise agreement, or the assignment document as proof of the franchisor's rights.
This clause ensures a smooth transition of online assets back to Sonesta Simply Suites at the end of the franchise agreement, maintaining brand consistency and control over the online representation of the Sonesta Simply Suites brand. The agreement also specifies that electronic signatures are valid and that the franchisor's rights extend to its successors and assigns.