Who specifies which personnel must sign non-compete agreements for a Sonesta Simply Suites franchise?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to obtain similar covenants from the personnel we specify, including officers, directors, managers, and other employees attending our training program or having access to Confidential Information.
We have the right to regulate the form of agreement that you use and to be a third-party beneficiary of that agreement with independent enforcement rights.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, Sonesta RL Hotels Franchising Inc. specifies which personnel must sign non-compete agreements. These personnel include officers, directors, managers, and other employees who attend the training program or have access to confidential information.
Sonesta Simply Suites requires franchisees to obtain similar non-compete agreements from these specified personnel. This ensures that individuals with key knowledge and access to the franchise system's confidential information are legally bound not to compete with the franchise during and after their association with it.
Furthermore, Sonesta Simply Suites retains the right to regulate the form of the non-compete agreement and to be a third-party beneficiary, allowing them independent enforcement rights. This provision gives Sonesta Simply Suites greater control over the non-compete agreements and ensures they can directly enforce these agreements if necessary, protecting their business interests and confidential information.