If Sonesta Simply Suites modifies or discontinues a Mark, is the franchisee reimbursed for expenses?

According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, if Sonesta Simply Suites decides to modify or discontinue the use of any of its Marks, franchisees must follow the franchisor's directions to change or discontinue using the Marks, or to use additional or substitute Marks within a reasonable timeframe after receiving notice. However, Sonesta Simply Suites has no obligation to reimburse franchisees for any expenses incurred as a result of these changes.

This lack of reimbursement extends to various costs a franchisee might face. Sonesta Simply Suites will not cover expenses related to promoting a modified or substitute trademark or service mark. Furthermore, the franchisor is not responsible for any indirect expenses, such as advertising costs, or for any loss of goodwill associated with a discontinued Mark.

This policy places the financial burden of rebranding or adapting to new Marks entirely on the franchisee. It is a significant factor for prospective franchisees to consider, as rebranding can involve substantial costs, including new signage, marketing materials, and potentially lost business due to brand recognition issues. Franchisees should factor in these potential costs when evaluating the overall investment and potential profitability of a Sonesta Simply Suites franchise.