What happens to a Sonesta Simply Suites franchise if the franchisee dies or becomes incapacitated?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN | SUMMARY |
|---|---|---|
| FRANCHISE AGREEMENT | ||
| approval of transfer | the period between your request and the effective date of the transfer, nor have you received a notice of termination from us; the transferee, its owners and its affiliates do not have an ownership interest in or perform services for a Competitive Business; you provide us all information or documents we request about the proposed transfer, the transferee, and its owners; the transferee satisfactorily completes any training, brand introduction and/or orientation program that we require at the time of the transfer; your landlord, if applicable, consents to the transfer or sublease of the Lease; the transferee agrees to meet with us at our request, either virtually or in person, to conduct an inspection of the Premises and develop a PIP for necessary upgrades, remodeling, and refurbishment of your Hotel and your Hotel's FF&E in accordance with our then current requirements and specifications for Brand Hotels, and complete the renovation work therein within 120 days after the effective date of the transfer; the transferee, at our request, signs our then current form of franchise agreement and related documents (which agreement may differ materially from the Franchise Agreement); transferee meets our qualifications then imposed on new franchisees; payment of transfer fee; you and your owners sign a general release; and you cease to identify yourself as a current or former franchisee. | |
| n. Franchisor's | Not Applicable | Not Applicable |
| right of first | ||
| refusal to acquire | ||
| franchisee's | ||
| business | ||
| o. Franchisor's | Not Applicable | Not Applicable |
| option to | ||
| purchase | ||
| franchisee's | ||
| business | ||
| p. Death or disability of franchisee | Section 12.C | Upon the death or incapacity of a franchisee who is a natural person or one of your owner's if you are an entity, if a transfer is proposed to be made to such person's spouse and we do not approve the spouse as transferee, the trustee or administrator of the transferor's estate will have nine months after the disapproval in which to transfer the interests to another party approved by us. Transfer to a spouse will be subject to the same conditions identified in subsection m. above, except no transfer fee will be due. |
| q. Non competition covenants during the term of the franchise | Section 7.A | No direct or indirect interest as an owner in a Competitive Business, wherever located or operating; no performing services for a Competitive Business, wherever located or operating; and no use of the Franchise System or Brand Standards for any business other than your Hotel. |
| r. Non | Not Applicable | Not Applicable |
| competition | ||
| covenants after | ||
| the franchise is | ||
| terminated or | ||
| expires | ||
| s. Modification of | Section 17.K | No modifications of the Franchise Agreement except by written agreement, except that |
| the agreement | we may modify the Brand Manual and Brand Standards. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 66–70)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, Section 12.C of the Franchise Agreement addresses the death or incapacity of a franchisee who is a natural person, or one of the owners if the franchisee is an entity. In such cases, if a transfer is proposed to the deceased or incapacitated person's spouse and Sonesta Simply Suites does not approve the spouse as the transferee, the trustee or administrator of the transferor's estate has nine months after the disapproval to transfer the interests to another party approved by Sonesta Simply Suites.
If the transfer is to a spouse, it will be subject to the same conditions as any other transfer, except that no transfer fee will be due. These conditions generally include requirements such as the franchisee being current on all obligations, the transferee not having an interest in a competitive business, satisfactory completion of training programs, consent from the landlord (if applicable), agreement to meet with Sonesta Simply Suites to discuss property improvements, and the transferee meeting the qualifications imposed on new franchisees. The transferee may also be required to sign Sonesta Simply Suites' then-current form of franchise agreement, which may differ materially from the original agreement.
This provision ensures that in the event of death or incapacity, there is a structured process for transferring the franchise to a qualified party, maintaining the standards and integrity of the Sonesta Simply Suites brand. The nine-month window provides the estate sufficient time to find a suitable transferee, while Sonesta Simply Suites retains the right to approve the new franchisee to protect its interests. The waiver of the transfer fee for a spouse is a notable benefit, but the spouse must still meet all other qualifications.