What section of the Sonesta Simply Suites agreement discusses the transfer of the agreement by the franchisor?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
12. TRANSFER.
- A. By Us. We have the right to transfer or assign this Agreement or any of our rights, obligations, or assets under this Agreement to any person or legal entity so long as the transferee assumes all our obligations to you under this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, Section 12.A of the franchise agreement outlines the franchisor's right to transfer or assign the agreement. Specifically, Sonesta Simply Suites has the right to transfer the agreement, or any rights, obligations, or assets associated with it, to another person or legal entity.
However, there is a condition attached to this right. The entity or person to whom Sonesta Simply Suites transfers the agreement must assume all of Sonesta Simply Suites' obligations to the franchisee as outlined in the original agreement. This means that the new party taking over the agreement must honor all the terms and conditions that Sonesta Simply Suites initially agreed to with the franchisee.
This clause protects the franchisee in the event of a transfer, ensuring that their rights and the franchisor's responsibilities remain intact. It is a fairly standard clause in franchise agreements, designed to provide flexibility for the franchisor while safeguarding the franchisee's investment and operational framework.