Under what conditions is Sonesta willing to grant a franchise for a Sonesta Simply Suites hotel?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- C.
We grant to persons who we determine satisfactorily meet our qualifications, and who confirm their willingness to undertake the investment and effort, a franchise to own and operate a Brand Hotel offering the products and services we authorize and using our and our affiliates' distinct business formats, methods, procedures, signs, designs, layouts, standards, specifications, and Marks (the "Franchise System"), which we may improve, further develop, or modify.
We are willing to grant you the franchise on the terms and conditions contained in this Agreement.
Subject to this Agreement's terms, we grant you a limited and non-exclusive franchise (the "Franchise") to establish and operate your Hotel under the Franchise System at
the Premises, and to use the Franchise System and the Brand Standards (as defined in Section 2.A) in its operation, for a term beginning on the Opening Date (as defined in Section 2.E) and expiring 20 years from the Opening Date, unless sooner terminated under Section 14 of this Agreement (the "Term").
Opening your Hotel before we authorize you to open will constitute unauthorized use of the Marks and a material breach of the Franchise Agreement.
If you open your Hotel prior to our authorization, you agree to pay to us damages as set forth in Section 14.G(3) of the Franchise Agreement.
In order to acquire a successor franchise, you must satisfy all of the other conditions for a successor franchise and you and your owners agree to execute the form of franchise agreement and any ancillary agreements we then customarily use in granting franchises for Brand Hotels (modified as necessary to reflect the fact that it is for a successor franchise) or for hotels of the different brand concept, if applicable, which may contain provisions that differ materially from any and all of those contained in this Agreement. You must pay a renewal fee in an amount equal to the Initial Fee, as provided in Section 3.A of this Agreement. You and your owners further agree to sign general releases, in a form satisfactory to us, of any and all claims against us and our affiliates and our and their owners, officers, directors, employees, agents, successors, and assigns. We will consider your or your owners' failure to sign these agreements and releases and to deliver them to us for acceptance and execution (together with the renewal fee) within 30 days after their delivery to you to be an election not to acquire a successor franchise.
Except in the case of an immediate termination as provided in Section 14.B below, we have the right to terminate this Agreement if you fail to cure an Event of Default within 30 days after we furnish notice of default to you based on the Event of Default, or, if there is a non-monetary Event of Default that is incapable of cure within 30 days, if you fail to diligently pursue cure of such default and fail to cure the default within the additional time periods we set forth in the notice of default.
- (1) An "Event of Default" will occur if you fail to satisfy or comply with any of the obligations, requirements, conditions, or terms set forth in (i) this Agreement, the Brand Standards (including the minimum performance scores required by the Brand Manual), or any attachment to this Agreement; or (ii) any other agreement you have with us, or an Entity, relating to your Hotel, including, any computer system agreement, or any agreement to manage your Hotel. An "Event
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Sonesta Simply Suites grants franchises to individuals who satisfactorily meet their qualifications and demonstrate a willingness to invest the necessary capital and effort. The franchise allows the franchisee to own and operate a Sonesta Simply Suites hotel, offering authorized products and services while adhering to Sonesta Simply Suites's business formats, methods, procedures, standards, and trademarks.
Sonesta Simply Suites grants a limited and non-exclusive franchise to operate a hotel under the franchise system for a term that begins on the opening date and extends for 20 years, unless terminated earlier. The franchisee must operate the hotel at a specific location (the Premises) and adhere to the Brand Standards. Opening a hotel before receiving authorization from Sonesta Simply Suites constitutes unauthorized use of the brand's trademarks and a material breach of the Franchise Agreement.
To acquire a successor franchise, franchisees must meet all conditions, including executing the current franchise agreement and any related documents, which may differ from the original agreement. Franchisees must also pay a renewal fee equivalent to the initial fee and sign general releases of claims against Sonesta Simply Suites and its affiliates. Failure to comply with these requirements within 30 days of receiving the documents is considered an election not to acquire a successor franchise.
Sonesta Simply Suites retains the right to terminate the franchise agreement if the franchisee fails to correct a default within 30 days of receiving notice. An event of default occurs if the franchisee does not comply with the obligations outlined in the agreement, Brand Standards, or any other agreement related to the hotel. This includes failing to meet minimum performance scores or violating computer system agreements. Unauthorized use of the Marks and a material breach of the Franchise Agreement will occur if a franchisee opens their hotel prior to authorization.