What is required regarding the management agreement between a Sonesta Simply Suites franchisee and their Management Company?
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.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 65–66)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites FDD, while franchisees are not required to personally manage their hotel, if they choose not to, they must hire a Management Company approved by Sonesta Simply Suites. The management agreement between the franchisee and the Management Company requires Sonesta Simply Suites's prior written approval. Sonesta Simply Suites can withhold this approval at their discretion, based on the proposed Management Company's ability to manage the hotel according to the Franchise Agreement and brand standards.
If Sonesta Simply Suites approves a change in the Management Company, the new Management Company must sign a Management Company Joinder to the Franchise Agreement. Regardless of whether a franchisee retains a Management Company, they remain responsible for the management, direction, and control of their hotel. Sonesta Simply Suites reserves the right to revoke their approval of the Management Company if it fails to remain qualified to manage the hotel.
The management agreement between the franchisee and the Management Company is subject to and subordinate to the Franchise Agreement. In the event of any conflict between the two agreements, the Franchise Agreement will take precedence. Furthermore, Sonesta Simply Suites requires the Management Company to execute a Management Company Joinder to the Franchise Agreement, making them jointly and severally liable for the franchisee's obligations under the agreement, except for the actual payments of amounts due to third parties or Sonesta Simply Suites's affiliates.