Under what conditions can a Sonesta Simply Suites franchisee request consent for a proposed transfer?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Conditions for Approval of Transfer. If you (and your owners) are in full compliance with this Agreement, then you may request our consent to a proposed transfer. We will give your request reasonable consideration but may condition our consent on compliance with certain requirements, including the following:
- (1) you have paid all Royalty and Brand Promotion Fee payments, and other amounts owed to us, our affiliates, and third-party vendors and have submitted all required reports and statements:
- (2) you have not violated any provision of this Agreement, the Lease, or any other agreement with us during both the 60-day period before you requested our consent to the transfer and the period between your request and the effective date of the transfer, nor have you received a notice of termination from us;
- (3) neither the transferee nor its owners (if the transferee is an Entity) or affiliates have an ownership interest (direct or indirect) in or perform services for a Competitive Business;
- (4) you provide us all information or documents we request about the proposed transfer, the transferee, and its owners;
- (5) the transferee completes to our satisfaction any training, brand introduction and/or orientation program that we require at the time of the transfer;
- (6) your landlord, if applicable, allows you to transfer the Lease or sublease the Premises to the transferee:
- (7) the transferee agrees (if the transfer is of this Agreement) to meet with us at our request, either virtually or in person, to conduct an inspection of the Premises and develop a PIP for necessary upgrades, remodeling, and refurbishment of your Hotel and your Hotel's FF&E in
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;
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, a franchisee can request consent for a proposed transfer if they (and their owners) are in full compliance with the Franchise Agreement. However, Sonesta Simply Suites may place certain requirements on their consent.
These requirements include ensuring all Royalty and Brand Promotion Fee payments, along with any other amounts owed to Sonesta Simply Suites, its affiliates, and third-party vendors, have been paid. Additionally, all required reports and statements must be submitted. The franchisee must not have violated any provision of the Franchise Agreement, the Lease, or any other agreement with Sonesta Simply Suites during the 60-day period before requesting consent, or between the request and the transfer's effective date. Furthermore, the franchisee must not have received a notice of termination from Sonesta Simply Suites.
Other conditions include that the transferee (or its owners/affiliates) must not have an ownership interest in or perform services for a competitive business. The franchisee must provide all requested information and documents about the proposed transfer and the transferee. The transferee must also complete any required training or orientation programs to Sonesta Simply Suites' satisfaction. If applicable, the landlord must allow the transfer of the Lease or sublease of the premises to the transferee. The transferee must agree to meet with Sonesta Simply Suites to inspect the premises and develop a Property Improvement Plan (PIP) for necessary upgrades, completing the renovation work within 120 days after the transfer's effective date.