Does Sonesta Simply Suites maintain a brand promotion program for all Network Hotels?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
tels, Network Hotels, or such other brands, or which would constitute an act of moral turpitude. The obligations of this Section 8.O shall survive any expiration or termination of this Agreement.
9. MARKETING.
A. Brand Promotion. We and our affiliates have established a brand promotion program for all Network Hotels. We and our affiliates reserve the right to separate the brand promotion program into separate brand promotion programs for each brand or any combination of brands we and they determine, or to consolidate the brand promotion program with the brand promotion program of other brands we or our affiliates maintain so that we maintain and administer one brand promotion program for all brands or any combination of brands as we determine.
We or our affiliates or other designees may use some or all of your Brand Promotion Fees, in conjunction with other Network Hotels' contributions or promotional fees, to pay for various expenses and programs that, in our view, benefit, in the short-term or the long-term, the Brand Hotels or any or all of the Network Hotels worldwide. These programs and expenditures may include but are not limited to: preparing and producing video, audio, and written materials and digital media; developing, implementing, and maintaining the Franchise System Website and related strategies; administering international, national, regional and multi-regional marketing and advertising programs (which may be based in the U.S. or elsewhere, as we determine in our sole discretion), including purchasing trade journal, direct mail, and other media advertising and using advertising, promotion, and marketing agencies and other advisors to provide assistance; administering online advertising and marketing campaigns (including search engine, social media, email, and display ad campaigns); developing and administering software, apps, and related integrations; implementing and supporting the loyalty program or other marketing programs designed to encourage the patronage of Network Hotels; supporting public relations, market research, and other advertising, promotion, and marketing activities; participating in travel industry trade shows, operating a global sales department, which activities include group sales, business-to-business, transient, leisure and specialty markets; and such other uses as we deem appropriate for the promotion of Network Hotels and further developing the reputation and image of Network Hotels. We and our affiliates have sole discretion to determine how we spend these fees, including sole control over the creative concepts, materials, endorsements, and media used in the programs, the geographic market in which we and they place any media and allocation of advertising. We or our affiliates may enter into arrangements for development, marketing, operations, administrative, technical and support functions, facilities, programs, services, and personnel with any other entity, including our affiliates.
We and our affiliates will account for Brand Promotion Fees separately from our other funds, though we are not obligated to maintain them in a separate account. We and our affiliates may use Brand Promotion Fees to reimburse us or our affiliates or designees for the salaries and benefits of personnel who directly or indirectly manage and administer the brand promotion programs, associated administrative costs, travel expenses of personnel while they are on corresponding business, meeting costs, overhead relating to the brand promotion programs, and other expenses that we incur in activities related to administering or directing such programs, including conducting market research, public relations, preparing advertising, promotion, and marketing materials, and collecting and accounting for Brand Promotion Fees.
The brand promotion programs are not a trust and the Brand Promotion Fees do not bear interest. We do not owe any fiduciary obligation to you for administering the brand promotion program or any other reason. We or our affiliates will use Brand Promotion Fees for the purposes described in this Section 9.A. Our spending of the Brand Promotion Fees in any fiscal year may be more or less than the total Brand Promotion Fee payments in that year, and the brand promotion programs may borrow from us or others (paying reasonable interest) to cover deficits, or invest any surplus for future use. We may prepare an annual, unaudited statement of Brand Promotion Fee payments and expenses, and give you a copy of the most recently prepared statement upon your written request to us.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites FDD, Sonesta Simply Suites and its affiliates have established a brand promotion program for all Network Hotels. However, Sonesta Simply Suites and its affiliates reserve the right to separate the brand promotion program into separate programs for each brand or any combination of brands they determine. They can also consolidate the brand promotion program with other brands they maintain, administering one program for all or any combination of brands.
Sonesta Simply Suites, its affiliates, or their designees may use the Brand Promotion Fees, along with contributions from other Network Hotels, to cover expenses and programs that benefit the Brand Hotels or any or all of the Network Hotels worldwide. These programs and expenditures may include creating video, audio, written, and digital materials; developing and maintaining the Franchise System Website; administering marketing and advertising programs; online advertising and marketing campaigns; developing and administering software and apps; supporting the loyalty program; and participating in travel industry trade shows.
Sonesta Simply Suites and its affiliates have sole discretion in determining how these fees are spent, including control over creative concepts, materials, endorsements, and media used in the programs. They can also enter into arrangements for various functions with any other entity, including their affiliates. This means that while there is a brand promotion program, the specifics of how it operates and how funds are allocated are subject to change at the discretion of Sonesta Simply Suites and its affiliates.
Sonesta Simply Suites does not need to ensure that brand promotion program expenditures in any geographic area are proportionate to Brand Promotion Fees paid by Network Hotels in that area or that any Network Hotel benefits directly or in proportion to its Brand Promotion Fees paid. Franchisees of each brand, and company or affiliate-owned or managed Network Hotels, may pay Brand Promotion Fees at a different rate. Sonesta Simply Suites and its affiliates also may at any time defer or reduce Brand Promotion Fees payable by a franchisee and, upon 30 days' prior notice to you, reduce or suspend Brand Promotion Fee payments and programs for which they use such payments for one or more periods of any length and terminate (and, if terminated, reinstate) such programs.