Under what condition can Sonesta Simply Suites transfer the Franchise Agreement?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
accordance with our then-current requirements and specifications for Brand Hotels, and complete the Renovation Work therein within 120 days after the effective date of the transfer;
- (8) the transferee, at our request, signs our then current form of franchise agreement and related documents, any and all of the provisions of which may differ materially from any and all of those contained in this Agreement;
- (9) The transferee shall demonstrate to our satisfaction that the transferee meets our then-current standards for a new franchisee, including educational, managerial, and business standards; possesses a good moral character, business reputation, and credit rating; has the aptitude and ability to operate your Hotel; and has sufficient equity capital to operate your Hotel;
- (10) you or the transferee pays us a transfer fee equal to the Initial Fee, as provided in Section 3.A of this Agreement. However, no transfer fee is due if, upon a spouse's death, that spouse's interest in this Agreement and your Hotel, or ownership in you, is transferred to the surviving spouse, provided that such transfer is subject to the terms and conditions of this Section 12;
- (11) you (and your transferring owners) sign a general release, in a form satisfactory to us, of any and all claims against us and our affiliates and our and their owners, officers, directors, employees, and agents;
- (12) you and your owners agree that all the transferee's obligations under promissory notes, agreements, or security interests reserved in your Hotel are subordinate to the transferee's obligation to pay Royalty, Brand Promotion Fees, and other amounts due to us, our affiliates, and third-party vendors and otherwise to comply with this Agreement; and
- (13) you and your transferring owners will not directly or indirectly at any time or in any manner (except with respect to other Network Hotels you own and operate) identify yourself or themselves or any business as a current or former Hotel or as one of our franchisees; use any Mark, any colorable imitation of a Mark, or other indicia of a Brand Hotel in any manner or for any purpose; or utilize for any purpose any trade name, trade or service mark, or other commercial symbol that suggests or indicates a connection or association with us.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, a franchisee can transfer their Franchise Agreement under specific conditions. The transferee must meet Sonesta Simply Suites' current standards for new franchisees, including demonstrating satisfactory educational, managerial, and business standards, possessing a good moral character, business reputation, and credit rating, and having the aptitude, ability, and sufficient equity capital to operate the hotel.
Additionally, the hotel must meet Sonesta Simply Suites' then-current requirements and specifications for Brand Hotels and complete any required renovation work within 120 days after the transfer's effective date. The transferee may be required to sign Sonesta Simply Suites' then-current form of franchise agreement, which may differ materially from the original agreement. The franchisee or the transferee must pay Sonesta Simply Suites a transfer fee equal to the Initial Fee outlined in Section 3.A of the agreement, although this fee is waived in the event of a transfer to a surviving spouse upon the death of the other spouse, provided the transfer adheres to the terms and conditions in Section 12.
Furthermore, the transferring franchisee must sign a general release of any claims against Sonesta Simply Suites and its affiliates. All obligations under promissory notes, agreements, or security interests related to the hotel must be subordinate to the transferee's obligation to pay royalties, brand promotion fees, and other amounts due to Sonesta Simply Suites, its affiliates, and third-party vendors. Finally, the transferring franchisee must agree not to identify themselves or any business as a current or former hotel or franchisee of Sonesta Simply Suites, or use any marks or indicia associated with the brand, except with respect to other Network Hotels they own and operate.