Does Sonesta Simply Suites require franchisees to obtain non-compete covenants from specific personnel?

According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, franchisees are required to obtain non-compete covenants from specific personnel. These personnel include officers, directors, managers, and other employees who attend Sonesta Simply Suites' training program or have access to confidential information.

The non-compete agreement ensures that these individuals do not engage in activities that could harm the Sonesta Simply Suites brand or Franchise System. This includes preventing them from working for or owning a competitive business during the term of the franchise agreement. The term "Competitive Business" is defined as any entity that owns a competing hotel brand, grants franchises for a competitive hotel brand, or provides services to such entities.

Sonesta Simply Suites retains the right to regulate the form of the non-compete agreement that franchisees use. Additionally, Sonesta Simply Suites is a third-party beneficiary of the agreement, granting them independent enforcement rights. This allows Sonesta Simply Suites to directly enforce the non-compete obligations against the specified personnel, providing an additional layer of protection for the Franchise System.

This requirement is fairly standard in the franchise industry, as franchisors seek to protect their trade secrets, customer relationships, and overall business model. By mandating these covenants, Sonesta Simply Suites aims to maintain a competitive edge and prevent key personnel from leveraging their knowledge and access to confidential information for the benefit of a competing business.