Will Sonesta Simply Suites provide the list of Approved Suppliers to the franchisee?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
We will provide the list of Approved Suppliers to you. We may provide your contact information to our Approved Suppliers and you may be contacted by our Approved Suppliers. We provide access to a third-party online procurement platform customized for the Network Brands, and we may require you to make certain purchases through that platform. Although we have the right to require the platform or Approved Suppliers to charge you a 2% to 3% procurement fee, which would be remitted to us, we currently do not require them to charge such fee.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 42–46)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, Sonesta Simply Suites retains the right to approve or designate all vendors and suppliers that franchisees use for their hotels. This ensures consistency and quality across all Sonesta Simply Suites locations and allows the company to leverage volume purchasing power. Sonesta Simply Suites may designate a sole supplier or approved suppliers, which could include Sonesta Simply Suites itself or its affiliates. Franchisees may be required to purchase certain supplies only from these approved suppliers and sign agreements with them.
The FDD confirms that Sonesta Simply Suites will provide the list of Approved Suppliers to the franchisee. Additionally, Sonesta Simply Suites may share the franchisee's contact information with these approved suppliers, who may then contact the franchisee directly. Sonesta Simply Suites also provides access to a third-party online procurement platform customized for the Network Brands, and franchisees may be required to make certain purchases through this platform.
While Sonesta Simply Suites has the right to require the platform or Approved Suppliers to charge a 2% to 3% procurement fee, which would be remitted to them, they currently do not require them to charge such a fee. This fee would be a percentage of the franchisee's purchases made through the platform or from approved suppliers. It is important for prospective franchisees to understand that Sonesta Simply Suites may implement this fee in the future, which would increase the cost of supplies and services.