Is Sonesta Simply Suites required to provide approval or consent to franchisees in all circumstances?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
tly and severally liable with you for all your obligations under this Agreement, except with respect to the actual payments of any amounts due to any third parties, our affiliates or pursuant to this Agreement. You must obtain our prior written consent to any change of the Management Company or if you wish to engage a Management Company after the Effective Date, which consent may be withheld in our sole discretion, and will be subject to the proposed Management Company demonstrating the capability to manage your Hotel pursuant to this Agreement and the Brand Standards. In the event we approve a change in the Management Company, the new Management Company must execute the Management Company Joinder to this Agreement.
You are solely responsible for the management, direction, and control of your Hotel, regardless of whether you retain a Management Company. We reserve the right to revoke our approval of the Management Company if, in our discretion, the Management Company fails to remain qualified to manage your Hotel. The management agreement between you and the Management Company shall be subject and subordinate to this Agreement and, in the event of any conflict between the management agreement and this Agreement, the controlling contract shall be this Agreement.
E. Approved Products, Services, and Suppliers. We and our affiliates reserve the right to periodically designate and approve standards and specifications of the FF&E and the products and services that we periodically authorize for use at your Hotel. We and our affiliates also reserve the right to designate and may approve, from time to time, manufacturers, vendors, distributors, suppliers, and producers (collectively referred to herein as "vendors"), terms, and distribution methods for any goods or services (which include, but are not limited to, services, insurance, products, equipment, supplies, and materials). You shall purchase all goods and services required for the operation of your Hotel in accordance with the standards and specifications we periodically set, and from approved or designated vendors if we have specified approved or designated vendors for a particular good or service (which we may concentrate purchases with one or more vendors to obtain lower prices, better advertising support, and/or better services for any group of franchisees for any given good or service, which may be us or an affiliate) under
terms, in the manner, and from the source designated by us or any of our affiliates. You may be required to sign such approved or designated vendors' form agreements for the purchase of such products and services. We may, at our option, arrange with approved vendors to collect or have our affiliates collect fees and expenses associated with goods and services they provide to you and, in turn, pay the vendor on your behalf for such goods or services. If we elect to do so, you agree that we or our affiliates may auto-debit your bank account for such amounts in the same manner and using the same authorization that you grant us with respect to payment of Royalty and other fees. We or any of our affiliates may be a supplier, distributor, or otherwise party to these transactions, and may derive revenue or profit from such transactions.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, franchisees must obtain prior written consent from Sonesta Simply Suites in certain situations. Specifically, franchisees need approval for any change of the Management Company or if they wish to engage a Management Company after the Effective Date of the franchise agreement. This consent can be withheld at Sonesta Simply Suites's discretion, contingent on the proposed Management Company's capability to manage the hotel according to the franchise agreement and brand standards. If a change in the Management Company is approved, the new company must execute a Management Company Joinder to the agreement.
Sonesta Simply Suites also requires franchisees to submit plans, layouts, specifications, and drawings for the hotel, including furnishings, fixtures, equipment, and décor, for approval before starting any construction work. While Sonesta Simply Suites may provide prototype plans as a guide, their approval does not warrant the efficacy of the plans or assume responsibility for the construction work. Franchisees are responsible for obtaining all necessary licenses, permits, and zoning variances for the construction work and must submit copies of these to Sonesta Simply Suites for approval before commencing work.
Furthermore, Sonesta Simply Suites reserves the right to designate and approve standards and specifications for FF&E (furniture, fixtures, and equipment) and other products and services used at the hotel. They also reserve the right to designate and approve manufacturers, vendors, distributors, suppliers, and producers for any goods or services. Franchisees are required to purchase all goods and services in accordance with Sonesta Simply Suites's standards and from approved or designated vendors if specified. This allows Sonesta Simply Suites to potentially concentrate purchases with specific vendors to secure better pricing, advertising support, or services for the franchise system.