Can Sonesta Simply Suites place requirements on their consent to a proposed 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;
- (3) neither the transferee nor its owners (if the transferee is an Entity) or affiliates have an ownership interest (direct or indirect) in or perform services for a Competitive Business;
- (4) you provide us all information or documents we request about the proposed transfer, the transferee, and its owners;
- (5) the transferee completes to our satisfaction any training, brand introduction and/or orientation program that we require at the time of the transfer;
- (6) your landlord, if applicable, allows you to transfer the Lease or sublease the Premises to the transferee:
- (7) the transferee agrees (if the transfer is of this Agreement) to meet with us at our request, either virtually or in person, to conduct an inspection of the Premises and develop a PIP for necessary upgrades, remodeling, and refurbishment of your Hotel and your Hotel's FF&E in
accordance with our then-current requirements and specifications for Brand Hotels, and complete the Renovation Work therein within 120 days after the effective date of the transfer;
- (8) the transferee, at our request, signs our then current form of franchise agreement and related documents, any and all of the provisions of which may differ materially from any and all of those contained in this Agreement;
- (9) The transferee shall demonstrate to our satisfaction that the transferee meets our then-current standards for a new franchisee, including educational, managerial, and business standards; possesses a good moral character, business reputation, and credit rating; has the aptitude and ability to operate your Hotel; and has sufficient equity capital to operate your Hotel;
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, Sonesta Simply Suites can place requirements on their consent to a proposed transfer. Sonesta Simply Suites will give the transfer request reasonable consideration but may require compliance with specific conditions.
These conditions include ensuring all Royalty and Brand Promotion Fee payments, and other amounts owed to Sonesta Simply Suites, its affiliates, and third-party vendors, are paid. Additionally, all required reports and statements must be submitted. 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 the transfer request and the period between the request and the transfer's effective date. Furthermore, neither the transferee nor its owners can have an ownership interest in or perform services for a Competitive Business.
Additional requirements include the franchisee providing all requested information about the proposed transfer and the transferee completing any required training or orientation programs to Sonesta Simply Suites' satisfaction. If applicable, the landlord must allow the transfer of the Lease or sublease of the premises to the transferee. The transferee must also agree to meet with Sonesta Simply Suites to inspect the premises and develop a Property Improvement Plan (PIP) for necessary upgrades and renovations, completing the renovation work within 120 days after the transfer's effective date. Finally, Sonesta Simply Suites may require the transferee to sign the then-current form of franchise agreement and demonstrate that they meet the standards for a new franchisee.