What must a new Management Company demonstrate to Sonesta Simply Suites to be approved?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
You must obtain our prior written consent to any change of the Management Company or if you wish to engage a Management Company after the Effective Date, which consent may be withheld in our sole discretion, and will be subject to the proposed Management Company demonstrating the capability to manage your Hotel pursuant to this Agreement and the Brand Standards.
In the event we approve a change in the Management Company, the new Management Company must execute the Management Company Joinder to this Agreement.
You are solely responsible for the management, direction, and control of your Hotel, regardless of whether you retain a Management Company. We reserve the right to revoke our approval of the Management Company if, in our discretion, the Management Company fails to remain qualified to manage your Hotel. The management agreement between you and the Management Company shall be subject and subordinate to this Agreement and, in the event of any conflict between the management agreement and this Agreement, the controlling contract shall be this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, if a franchisee wants to change their management company or engage one after the franchise agreement's effective date, they must first obtain prior written consent from Sonesta Simply Suites. This consent can be withheld at Sonesta Simply Suites' sole discretion.
To gain approval, the proposed management company must demonstrate its capability to manage the Sonesta Simply Suites hotel according to the franchise agreement and the brand standards set by Sonesta Simply Suites. If Sonesta Simply Suites approves the change in management companies, the new management company is required to execute a Management Company Joinder to the existing franchise agreement.
Even with a management company in place, the franchisee remains solely responsible for the overall management, direction, and control of their Sonesta Simply Suites hotel. Sonesta Simply Suites retains the right to revoke its approval of the management company if it determines that the company no longer meets the qualifications to manage the hotel. The management agreement between the franchisee and the management company is subject to and subordinate to the franchise agreement; in case of any conflicts, the franchise agreement takes precedence.