What must a Sonesta Select Sonesta Essential franchisee receive before opening their hotel?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
However, you will not open your Hotel unless and until you receive our written authorization to do so.
We will only authorize your Hotel to open when we, at our sole discretion, are satisfied that you have complied with all the terms and conditions set forth in the Franchise Agreement, including but not limited to Section 2.E, and this Rider.
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.
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, a Sonesta Select Sonesta Essential franchisee must receive written authorization from Sonesta RL Hotels Franchising Inc. before opening their hotel. This authorization is contingent upon the franchisee's compliance with all terms and conditions outlined in the Franchise Agreement and its associated Rider, including Section 2.E.
Sonesta Select Sonesta Essential retains sole discretion in determining whether a franchisee has met all requirements for opening. Opening a hotel without this authorization constitutes unauthorized use of the brand's Marks and a material breach of the Franchise Agreement.
If a franchisee opens their hotel prior to receiving authorization from Sonesta Select Sonesta Essential, they agree to pay damages as specified in Section 14.G(3) of the Franchise Agreement. This underscores the importance of adhering to the franchisor's procedures and obtaining explicit approval before commencing operations to avoid potential penalties and legal ramifications.