Can a Sonesta Simply Suites franchisee's immediate family members interfere with Sonesta's relationships with its franchisees?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Covenants Against Competition.
(1) You agree that, during the Term, neither you, any of your owners, nor any of your or your owners' immediate family members will, without our prior written consent:
(1) interfere or attempt to interfere with our or our affiliates' relationships with any guests, franchisees, lenders, vendors, or consultants; or
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, during the term of the franchise agreement, neither the franchisee, any of the franchisee's owners, nor any of the franchisee's or their owners' immediate family members are allowed to interfere or attempt to interfere with Sonesta Simply Suites' or its affiliates' relationships with any guests, franchisees, lenders, vendors, or consultants without prior written consent from Sonesta Simply Suites.
This restriction is part of the covenants against competition outlined in the franchise agreement. It aims to protect Sonesta Simply Suites' relationships and goodwill by preventing any actions that could harm its connections with various stakeholders. This is a fairly standard clause in franchise agreements, intended to ensure that franchisees and their close relations do not undermine the franchisor's business operations or relationships.
For a prospective franchisee, this means that not only are they themselves bound by this non-interference clause, but their immediate family members are as well. This could have implications for family businesses or situations where family members are involved in the operations or decision-making of the franchise. Franchisees need to ensure that their family members are aware of this restriction and do not engage in any activities that could be construed as interference, as it could lead to a breach of the franchise agreement.