Can Sonesta Simply Suites restrict the pricing of guest room stays?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless prohibited by applicable law, we may periodically set a maximum or minimum price that you may charge for Guest Rooms and other products and services offered by Brand Hotels, including terms of promotional or discount programs we may offer to guests of the Brand Hotels. If we impose such a maximum or minimum price for any Guest Room or other product or service, you may charge any price for the Guest Room, product, or service up to and including our designated maximum price or down to and including our designated minimum price. The designated maximum and minimum prices for the same Guest Room rate, product or service may, at our option, be the same. For any Guest Room, product, or service for which we do not impose a maximum or minimum price, we may require you to comply with an advertising policy adopted by us which will prohibit you from advertising any price for a Guest Room, product or service that is different than our suggested retail price. Although you must comply with any advertising policy we adopt, you will not be prohibited from selling any Guest Room stay or other product or service at a price above or below the suggested retail price unless we impose a maximum price or minimum price for such product or service.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 66)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, Sonesta Simply Suites has the ability to set maximum and minimum prices for guest rooms, products, and services offered at Brand Hotels, unless prohibited by law. Franchisees must adhere to these price limits. For items without set price limits, Sonesta Simply Suites may require compliance with an advertising policy that prohibits advertising prices differing from their suggested retail price. However, franchisees are not prohibited from selling guest room stays or other products or services above or below the suggested retail price, unless a maximum or minimum price is imposed.
This means that as a Sonesta Simply Suites franchisee, you may have limited control over pricing, especially if Sonesta Simply Suites sets maximum or minimum prices. Even without mandated price ranges, your advertising must align with Sonesta Simply Suites' suggested retail prices. This policy ensures brand consistency and pricing standards across all Sonesta Simply Suites locations.
Compliance with brand standards, including pricing policies, is mandatory to maintain the goodwill of the Sonesta Simply Suites brand. While franchisees retain responsibility for day-to-day management, they must adhere to the brand's standards, which include sales, marketing, advertising, and promotional programs. Prospective franchisees should consider how these pricing restrictions might affect their revenue and profitability, especially in competitive markets where pricing flexibility is crucial.