What must the Franchisee Parties provide to Sonesta Simply Suites to effect the transfer?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
arrant that, upon the consummation of the Transfer: (i) the Hotel's assets and the [Real Estate / Lease] will be held solely in the name of the Assignee, [and] (ii) neither Assignor nor Assignor Owner[s] provides Assignee or Assignee Owner[s] with any financing in connection with the Transfer[, and (iii) under the Lease, Assignee will have the right to occupy the Hotel's premises during the entire term of the New Franchise Agreement];
- (b) Assignee Parties deliver to us a fully executed New Franchise Agreement and Guaranty and Assumption of Obligations;
- (c) Franchisee Parties must provide us with executed versions of any other documents executed by Franchisee Parties to effect the Transfer, and all other information we request about the proposed Transfer, and such Transfer meets all of our requirements and will not adversely affect Assignee's operation of the Hotel;
- (d) If the proposed Transfer requires notice to or approval from any landlord, vendor, lender or governmental authority, the Franchisee Parties have taken such appropriate action and provided us with evidence of the same;
- (e) Assignor pays or causes to be paid to us a transfer fee of $_______, as required under the Existing Franchise Agreement, which shall be fully earned by us and is non-refundable;
- (f) Assignor pays or causes to be paid to us $______, representing the amounts due and owing to us through the Closing Date, including but not limited to any past due amounts related to [insert as applicable];
Source: Item 23 — RECEIPTS (FDD pages 80–246)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, the Franchisee Parties (which includes the assignor and assignor owners) must fulfill several requirements to obtain consent for a transfer. These conditions ensure that the transfer process is compliant and maintains the integrity of the Sonesta Simply Suites franchise system.
Specifically, the Franchisee Parties must ensure all representations and warranties made in the agreement are true as of the closing date. They must also provide a fully executed New Franchise Agreement and Guaranty and Assumption of Obligations from the Assignee Parties. Additionally, executed versions of any other documents pertaining to the transfer, along with any other information requested by Sonesta Simply Suites about the proposed transfer, must be submitted. The Franchisee Parties must also demonstrate that they have taken appropriate action to notify or obtain approval from any relevant landlord, vendor, lender, or governmental authority, providing evidence of such actions to Sonesta Simply Suites.
Furthermore, the assignor is responsible for paying a transfer fee as required under the existing franchise agreement, as well as any outstanding amounts owed to Sonesta Simply Suites through the closing date. Finally, the Franchisee Parties must provide any other evidence reasonably requested by Sonesta Simply Suites to demonstrate that appropriate measures have been taken to effect the transfer, such as obtaining new insurance policies and business licenses, and that they have the ability to satisfy their obligations under the relevant agreements.