During the term of the Sonesta Simply Suites agreement, can a franchisee interfere with Sonesta's relationships with its lenders?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) interfere or attempt to interfere with our or our affiliates' relationships with any guests, franchisees, lenders, vendors, or consultants; or
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, franchisees are prohibited from interfering with Sonesta's relationships with its lenders. The franchise agreement explicitly states that franchisees cannot interfere or attempt to interfere with Sonesta or its affiliates' relationships with any guests, franchisees, lenders, vendors, or consultants. This restriction is in place to protect Sonesta's business relationships and goodwill.
This provision means that a Sonesta Simply Suites franchisee must not take any actions that could harm or disrupt Sonesta's relationships with its lenders. This could include making disparaging remarks about Sonesta to its lenders, attempting to negotiate directly with lenders on Sonesta's behalf, or any other activity that could undermine Sonesta's position with its financial partners. The franchisee's actions must not negatively impact Sonesta's ability to maintain positive relationships with these key stakeholders.
For a prospective franchisee, this underscores the importance of maintaining a professional and cooperative relationship with Sonesta. Any concerns or disputes should be addressed through the proper channels, without involving or interfering with Sonesta's external relationships. Failure to comply with this provision could potentially lead to a breach of the franchise agreement and possible termination.