Does the Sonesta Simply Suites franchisee need to be in full compliance with the agreement to request a transfer?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Conditions for Approval of Transfer. If you (and your owners) are in full compliance with this Agreement, then you may request our consent to a proposed transfer. We will give your request reasonable consideration but may condition our consent on compliance with certain requirements, including the following:
- (1) you have paid all Royalty and Brand Promotion Fee payments, and other amounts owed to us, our affiliates, and third-party vendors and have submitted all required reports and statements:
- (2) you have not violated any provision of this Agreement, the Lease, or any other agreement with us during both the 60-day period before you requested our consent to the transfer and the period between your request and the effective date of the transfer, nor have you received a notice of termination from us;
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, a franchisee must be in full compliance with the franchise agreement to request a transfer. Specifically, if a franchisee (and their owners) are in full compliance with the agreement, they may request consent to a proposed transfer. However, Sonesta Simply Suites may condition its consent on compliance with certain requirements.
These requirements include ensuring that all Royalty and Brand Promotion Fee payments, and other amounts owed to Sonesta Simply Suites, its affiliates, and third-party vendors, have been paid, and all required reports and statements have been submitted. Additionally, the franchisee must not have violated any provision of the Franchise Agreement, the Lease, or any other agreement with Sonesta Simply Suites during the 60-day period before requesting consent to the transfer, as well as the period between the request and the effective date of the transfer. Furthermore, the franchisee must not have received a notice of termination from Sonesta Simply Suites.
These conditions ensure that the Sonesta Simply Suites franchise system maintains its standards and that any transfer of ownership is to a party that meets the franchisor's criteria. This protects the brand and the interests of other franchisees within the system. A prospective franchisee should carefully review all conditions for transfer to fully understand their obligations and the circumstances under which a transfer may be approved or denied.