Is a Sonesta Simply Suites franchisee required to personally participate in the direct operation of their Hotel?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
You are not required to participate personally in the direct operation of your Hotel, although we recommend that you do so. If you (or your Principal, if you are a legal entity) do not personally manage your Hotel, you must hire a management company (the "Management Company") that we approve to manage the direct operation of your Hotel. The management agreement or other agreement between you and the Management Company will be subject to our prior written approval. Prior to opening your Hotel or within 90 days of activating your Hotel in our system, one of your Hotel Representative(s) must complete our training program to our satisfaction. Whether you are an individual, corporation, limited liability company, partnership or other entity, you are at all times responsible for the management, direction and control of your Hotel, regardless of whether you retain a Management Company. If you are a legal entity, your "Principal" must have at least a 25% ownership interest and voting power in you and must have the authority of a chief executive officer. If you hire a Management Company, it will not be required to have an equity interest in you.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 65–66)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, franchisees are not required to personally participate in the direct operation of their hotel. However, Sonesta Simply Suites recommends that the franchisee does so.
If a franchisee (or their Principal, if the franchisee is a legal entity) chooses not to personally manage the hotel, they must hire a management company approved by Sonesta Simply Suites to manage the hotel's direct operations. The agreement between the franchisee and the management company is subject to Sonesta Simply Suites' prior written approval.
Regardless of whether a management company is hired, the franchisee (or the Principal, if a legal entity) retains ultimate responsibility for the management, direction, and control of the hotel. If the franchisee is a legal entity, the Principal must have at least a 25% ownership interest and voting power and the authority of a chief executive officer. Within 90 days of activating the hotel in Sonesta Simply Suites' system or prior to opening, one of the Hotel Representatives must complete Sonesta Simply Suites' training program.