Under the Sonesta Simply Suites Collateral Assignment, what is the Franchisee assigning to the Franchisor?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
FOR VALUE RECEIVED, Franchisee hereby assigns to Franchisor all websites, domain names, homepages, e-mail addresses, social media accounts, usernames, other online presence, or presence on any electronic, virtual, or digital medium of any kind (each an "Online Presence") associated with Franchisor's trademarks and service marks and used from time to time in connection with the operation of the Franchised Business at the address provided above. This Assignment is for collateral purposes only and, except as specified herein, Franchisor shall have no liability or obligation of any kind whatsoever arising from or in connection with this Assignment, unless Franchisor shall notify the companies managing the Online Presences (the "Service Providers") and Franchisee's Internet service provider ("ISP") to effectuate the assignment pursuant to the terms hereof.
Upon termination or expiration of the Franchise Agreement (without extension), Franchisor shall have the right and is hereby empowered to effectuate the assignment of the Online Presences. In such event, Franchisee shall have no further right, title, or interest in the Online Presences, and shall remain liable to the Service Providers and the ISP for all past due fees owing to the Service Providers and the ISP on or before the effective date of the assignment hereunder.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, the franchisee is assigning all online presences associated with the franchisor's trademarks and service marks to the franchisor. This includes websites, domain names, homepages, email addresses, social media accounts, usernames, and any other online presence used in connection with the operation of the franchised business.
This assignment serves as collateral, meaning it's a security interest for Sonesta Simply Suites. The franchisor has no liability or obligation related to this assignment unless they notify the companies managing the online presences (Service Providers) and the franchisee's Internet service provider (ISP) to implement the assignment.
Upon termination or expiration of the franchise agreement, Sonesta Simply Suites has the right to effectuate the assignment of these online presences. At that point, the franchisee loses all rights, title, and interest in the online presences but remains responsible for any outstanding fees owed to the Service Providers and ISP up to the assignment date. This ensures that Sonesta Simply Suites can maintain control over its brand's online identity and presence, especially after a franchise agreement ends.