What are the obligations of a Sonesta Simply Suites franchisee upon termination or non-renewal of the Franchise Agreement?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN | SUMMARY |
|---|---|---|
| FRANCHISE AGREEMENT | reimbursing us for our purchase of insurance on your behalf; failing to obtain or maintain licenses required to operate your Hotel; we learn of any information involving you or your affiliates that we determine is likely to adversely reflect upon any gaming licenses or permits held by us or our affiliates, or our or their reputation; we reasonably determine that continued operation of your Hotel will result in imminent danger to public health or safety; you violate any law, ordinance, rule or regulation and fail to correct such violation within 72 hours after receiving notice from us or another party; or any guarantor breaches his or her guaranty or fails to provide adequate assurances to us (subject to state law). Non-curable defaults also include engaging in the same noncompliance within any consecutive 24-month period, or breach of the Franchise Agreement on 3 or more separate occasions within any consecutive 12-month period, regardless of whether the defaults are cured. If your Hotel is damaged by fire or other casualty and you elect to repair or rebuild your Hotel, we may terminate the Franchise Agreement if you fail to complete the restoration in accordance with Brand Standards and recommence operations within 180 days after the casualty event occurs. | |
| i. Franchisee's obligations on termination/non renewal | Sections 14.C through 14.H | Pay us all amounts owed within 15 days, and promptly pay all amounts owed to third parties when due; cease use of the Marks; cease identifying yourself or any business as a current or former franchisee or Hotel and cancel all fictitious or assumed name registrations relating to the Marks; deliver to us or destroy all signs, marketing materials, forms and other materials containing any Mark or relating to a Brand Hotel, including copies of Confidential Information; de-identify your Hotel; cease using and disable or transfer to us or our designee all telephone numbers, Online Presences and other contact identifiers used to operate your Hotel; pay damages, if applicable; not interfere with our or our affiliates' relationships with vendors or consultants or engage in activity that might injure the goodwill of the Marks or Brand Hotels; and honor any advance reservations made for your Hotel prior to the termination at the rates and on the terms established at the time of booking. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 66–70)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, franchisees have several obligations upon termination or non-renewal of their Franchise Agreement. These obligations are detailed in Sections 14.C through 14.H of the Franchise Agreement.
Upon termination or non-renewal, a Sonesta Simply Suites franchisee must pay all outstanding amounts owed to Sonesta Simply Suites within 15 days. Additionally, franchisees must promptly pay all amounts owed to third parties. Franchisees are required to cease all use of the Sonesta Simply Suites Marks and must stop identifying themselves or their business as a current or former franchisee or Hotel. They must also cancel any fictitious or assumed name registrations related to the Marks.
Furthermore, franchisees must either deliver to Sonesta Simply Suites or destroy all signs, marketing materials, forms, and other materials containing any Mark or relating to a Brand Hotel, including copies of Confidential Information. The franchisee is also required to de-identify their Hotel and cease using and disable or transfer to Sonesta Simply Suites or its designee all telephone numbers, Online Presences, and other contact identifiers used to operate the Hotel. The franchisee must also honor any advance reservations made for their Hotel prior to the termination at the rates and on the terms established at the time of booking. Finally, the franchisee must not interfere with Sonesta Simply Suites' or its affiliates' relationships with vendors or consultants or engage in activity that might injure the goodwill of the Marks or Brand Hotels and pay damages, if applicable.