Does Sonesta Simply Suites reserve the right to consolidate the brand promotion program with other brands?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
We and our affiliates have established a brand promotion program for all Network Hotels. We and our affiliates reserve the right to separate the brand promotion program into separate brand promotion programs for each brand or any combination of brands we and they determine, or to consolidate the brand promotion program with the brand promotion program of other brands we or our affiliates maintain so that we maintain and administer one brand promotion program for all brands or any combination of brands as we determine. Currently we require franchisees to pay a Brand Promotion Fee equal to 3.5% of Gross Rooms Revenue. However, we may increase the Brand Promotion Fee, but the Brand Promotion Fee will not exceed 4.5% of Gross Rooms Revenue. Brand Hotels that we or our affiliates own or manage may not pay us the Brand Promotion Fee on the same percentage basis as franchisees.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 48–60)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, Sonesta Simply Suites and its affiliates have established a brand promotion program for all Network Hotels. Sonesta Simply Suites and its affiliates reserve the right to separate the brand promotion program into separate brand promotion programs for each brand or any combination of brands they determine. They can also consolidate the brand promotion program with the brand promotion program of other brands they or their affiliates maintain, so that they maintain and administer one brand promotion program for all brands or any combination of brands as they determine.
Currently, Sonesta Simply Suites requires franchisees to pay a Brand Promotion Fee equal to 3.5% of Gross Rooms Revenue. However, Sonesta Simply Suites may increase this fee, but it will not exceed 4.5% of Gross Rooms Revenue. It is important to note that Brand Hotels owned or managed by Sonesta Simply Suites or its affiliates may not pay the Brand Promotion Fee on the same percentage basis as franchisees.
This means that Sonesta Simply Suites has the flexibility to manage brand promotion programs across its network of hotels, potentially leading to economies of scale or more targeted marketing efforts. However, it also means that franchisees may see changes in how their Brand Promotion Fees are used and how the overall marketing strategy is implemented. Prospective franchisees should consider the implications of these potential changes and how they might affect their individual business.