Can Sonesta Simply Suites modify or discontinue the Sonesta Travel Pass program?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
We and our affiliates may periodically modify or discontinue the Sonesta Travel Pass program or any other loyalty program that we or our affiliate designate. You must participate in and honor the terms of any and all loyalty, discount or other promotional program applicable to Brand Hotels and pay all applicable fees or charges associated with such programs (including any fees assessed by us and our affiliates, room discounts given to guests, or rewards provided to guests, that are applicable to your Hotel) that we and our affiliates offer to the public on your behalf and any room rate quoted to any guest at the time the guest makes an advance reservation. You must take all action necessary to participate in any loyalty program and you must grant us and our affiliates all necessary rights in and to any photographs, video and/or other marketing materials used in connection with any loyalty programs.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 48–60)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, Sonesta Simply Suites and its affiliates retain the right to modify or discontinue the Sonesta Travel Pass program, or any other loyalty program they designate. As a franchisee, you are obligated to participate in and adhere to the terms of any loyalty, discount, or promotional programs applicable to Brand Hotels. This includes paying all associated fees or charges, such as fees assessed by Sonesta Simply Suites and its affiliates, room discounts given to guests, or rewards provided to guests. These apply to your hotel as part of the program offered to the public.
This means that Sonesta Simply Suites has the flexibility to change the loyalty program's structure, benefits, or even end it entirely. Franchisees must stay informed of any changes and adjust their operations accordingly. The FDD specifies that franchisees must grant Sonesta Simply Suites and its affiliates all necessary rights to photographs, video, and other marketing materials used in connection with any loyalty programs.
For a prospective franchisee, this highlights the importance of understanding the terms and conditions of the Sonesta Travel Pass program and any other loyalty programs. It is crucial to factor in the potential for changes or discontinuation of these programs when evaluating the franchise opportunity. While participation in these programs can attract and retain customers, franchisees should be prepared for adjustments that may impact their revenue or operational procedures. Franchisees should also be aware that the loyalty program fee is initially 2.5% of the hotel's Qualified Revenue, but Sonesta Simply Suites may increase it up to 4.5%.
Overall, while loyalty programs like Sonesta Travel Pass can be beneficial, franchisees need to recognize that Sonesta Simply Suites maintains control over these programs and can make changes that affect franchisees. Therefore, it is essential to carefully review the terms of the franchise agreement and any related documents to fully understand the obligations and potential impacts of participating in these programs.