factual

What section of the Sonesta Simply Suites agreement discusses the franchisee's obligation for non-disparagement?

Sonesta_Simply_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

  • O. Non-Disparagement. You agree not to (and to use your best efforts to cause your current and former shareholders, members, officers, directors, managers, principals, agents, partners, employees, representatives, attorneys, spouses, heirs, affiliates, successors and assigns not to) disparage or otherwise speak or write negatively, directly or indirectly, of us and our current and former parents, subsidiaries, and affiliates, and each such foregoing entity's current and former owners, directors, managers, officers, employees, representatives, agents, franchisees, developers, predecessors, successors, and assigns, and

each foregoing individual's current and former spouses, heirs, executors and personal representatives, the Marks, the Franchise System, any Network Hotels, any business using the Marks, any other brand or service-marked or trademarked concept of us or our affiliates, or which would subject any of the foregoing to ridicule, scandal, reproach, scorn, or indignity, or which would negatively impact the goodwill of us, the Marks, Brand Hotels, Network Hotels, or such other brands, or which would constitute an act of moral turpitude. The obligations of this Section 8.O shall survive any expiration or termination of this Agreement.

Source: Item 22 — CONTRACTS (FDD pages 79–80)

What This Means (2025 FDD)

According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, Section 8.O of the franchise agreement outlines the franchisee's obligation regarding non-disparagement. This section stipulates that the franchisee, along with their current and former shareholders, members, officers, directors, managers, principals, agents, partners, employees, representatives, attorneys, spouses, heirs, affiliates, successors, and assigns, must not directly or indirectly disparage Sonesta Simply Suites or its related entities.

This obligation extends to refraining from any negative comments or writings about Sonesta Simply Suites's parents, subsidiaries, affiliates, owners, directors, managers, officers, employees, representatives, agents, franchisees, developers, predecessors, successors, and assigns. It also includes not disparaging the Marks, the Franchise System, any Network Hotels, any business using the Marks, or any other brand or service-marked concept of Sonesta Simply Suites or its affiliates. The agreement aims to prevent any actions that could subject these entities or individuals to ridicule, scandal, reproach, scorn, or indignity, or negatively impact their goodwill.

This non-disparagement clause is designed to protect the reputation and goodwill of the Sonesta Simply Suites brand and its network. It is a common provision in franchise agreements to ensure that franchisees do not harm the brand's image through negative statements. The obligations outlined in Section 8.O survive any expiration or termination of the Franchise Agreement, meaning that even after the franchise relationship ends, the franchisee must continue to adhere to the non-disparagement terms.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.