What is required before a Sonesta Simply Suites franchisee can open their hotel under the Marks?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Opening your Hotel before we authorize you to open will constitute unauthorized use of the Marks and a material breach of the Franchise Agreement.
If you open your Hotel prior to our authorization, you agree to pay to us damages as set forth in Section 14.G(3) of the Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, a franchisee must receive authorization from Sonesta Simply Suites before opening their hotel. Opening a hotel prior to receiving authorization from Sonesta Simply Suites constitutes unauthorized use of the Marks, which is a material breach of the Franchise Agreement.
If a Sonesta Simply Suites franchisee opens their hotel before authorization, they agree to pay damages as outlined in Section 14.G(3) of the Franchise Agreement. This highlights the importance of adhering to the franchisor's procedures and timelines for opening a franchised location.
This requirement is fairly standard in the franchise industry, as franchisors need to ensure that all locations meet brand standards and are properly prepared before commencing operations. Opening without authorization could lead to inconsistent customer experiences and damage the brand's reputation. Therefore, franchisees must work closely with Sonesta Simply Suites to meet all pre-opening requirements and obtain the necessary approvals before commencing operations.