What payments must be current for Sonesta Simply Suites to approve a franchise transfer?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Conditions for Approval of Transfer. If you (and your owners) are in full compliance with this Agreement, then you may request our consent to a proposed transfer. We will give your request reasonable consideration but may condition our consent on compliance with certain requirements, including the following:
- (1) you have paid all Royalty and Brand Promotion Fee payments, and other amounts owed to us, our affiliates, and third-party vendors and have submitted all required reports and statements:
- (2) you have not violated any provision of this Agreement, the Lease, or any other agreement with us during both the 60-day period before you requested our consent to the transfer and the period between your request and the effective date of the transfer, nor have you received a notice of termination from us;
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, to transfer a franchise, a franchisee must be in full compliance with the Franchise Agreement. This includes ensuring that all financial obligations are current. Specifically, all Royalty and Brand Promotion Fee payments, as well as any other amounts owed to Sonesta Simply Suites, its affiliates, and third-party vendors, must be fully paid.
In addition to these payments, the franchisee must have submitted all required reports and statements. Furthermore, the franchisee must not have violated any provision of the Franchise Agreement, the Lease, or any other agreement with Sonesta Simply Suites during the 60-day period before requesting consent for the transfer, or between the request and the effective date of the transfer. A notice of termination from Sonesta Simply Suites would also disqualify the transfer.
These conditions ensure that Sonesta Simply Suites maintains the financial health and operational standards of its franchise system. By requiring all payments to be current and compliance with all agreements, Sonesta Simply Suites aims to protect the brand and the interests of other franchisees within the system. Prospective franchisees should be aware of these requirements and maintain diligent financial and operational records to facilitate a smooth transfer process if they choose to sell their franchise in the future.