What are the Sonesta Simply Suites franchisee's obligations if they discontinue the use of the brand's marks?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Discontinuance of Use of Marks. If it becomes advisable, in our opinion, at any time for us to require you to modify or discontinue using any Mark or to use one or more additional or substitute trademarks or service marks, you agree to comply with our directions within a reasonable time after receiving notice.
We need not reimburse you for your expenses of changing the exterior and interior signs, stationery, packaging, operating equipment and supplies, employee uniforms, brochures and other promotional material, or any other items used at or in connection with your Hotel, for any loss of revenue due to any modified or discontinued Mark, or for your expenses of promoting a modified or substitute trademark or service mark.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, if Sonesta Simply Suites determines it is advisable to require a franchisee to modify or discontinue using any mark, the franchisee must comply with the franchisor's directions within a reasonable time after receiving notice.
Sonesta Simply Suites is not required to reimburse the franchisee for expenses incurred while changing exterior and interior signs, stationery, packaging, operating equipment and supplies, employee uniforms, brochures and other promotional material, or any other items used at or in connection with the Hotel. They also do not have to cover any loss of revenue due to any modified or discontinued Mark, or for expenses of promoting a modified or substitute trademark or service mark.
This clause places the financial burden of rebranding squarely on the franchisee should Sonesta Simply Suites decide to change or discontinue a brand mark. This is a significant risk for franchisees, as rebranding can be expensive and disruptive. Franchisees should factor in the potential costs of rebranding when evaluating the franchise opportunity and negotiate for some level of financial assistance from Sonesta Simply Suites in such an event.