What is the required action if Sonesta Simply Suites objects to any reference to them in offering literature?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Should we object to any reference to us or our affiliates or any of our business in the offering literature or prospectus, the literature or prospectus shall not be used until our objections are withdrawn.
You may not engage in a public offering of securities without our prior written consent.
You must pay us an amount equal to the Initial Fee, as provided in Section 3.A of this Agreement, in connection with such offering. You also may not use any of the Marks or otherwise imply our or any of our affiliates' participation or endorsement of any securities offering. We will have the right to approve any description of this Agreement or of your relationship with us, or any use of the Marks, contained in any prospectus or other communications or materials you use in the sale or offer of any securities. You may not imply our or any of our affiliate's participation in or endorsement of any such securities. To the extent we give you any comments to your documents which are related in any way to this Agreement or the Brand Hotels or Network Hotels, you must modify the documents to address those comments, satisfactory to us, before filing or distributing the documents. Our review of these documents will not in any way be considered our agreement with any statements contained in those documents, including any projections, or our acknowledgment or agreement that the documents comply with any applicable laws.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, if Sonesta Simply Suites objects to any reference to them, their affiliates, or their business within offering literature or a prospectus, the document cannot be used until Sonesta Simply Suites withdraws their objections.
Additionally, a franchisee is prohibited from engaging in a public offering of securities without obtaining prior written consent from Sonesta Simply Suites. If a franchisee does pursue a public offering, they must pay Sonesta Simply Suites an amount equal to the initial franchise fee. The franchisee cannot use Sonesta Simply Suites's trademarks or imply their participation or endorsement in any securities offering.
Sonesta Simply Suites retains the right to approve any description of the Franchise Agreement or the franchisee's relationship with them, as well as any use of their trademarks, within any prospectus or other communication materials used for the sale or offer of securities. The franchisee must modify the documents to address any comments Sonesta Simply Suites provides related to the Franchise Agreement, Brand Hotels, or Network Hotels before filing or distributing the documents. However, Sonesta Simply Suites's review of these documents does not constitute agreement with any statements, including projections, or acknowledgment that the documents comply with applicable laws.