What is a Sonesta Select Sonesta Essential franchisee required to provide if they do not own the premises?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Interest in Premises. You must deliver to us, prior to the Opening Date, and in any event no later than thirty (30) days after the Effective Date, either a deed reflecting your ownership of the Premises (the "Deed") or a copy of your lease for the Premises that allows you the right to enter into the Franchise Agreement (the "Lease"). If you fail to timely provide us the Deed or Lease, we may immediately terminate the Franchise Agreement. You represent and warrant that, throughout the Term of the Franchise Agreement, you will be entitled to possession of the Premises and your Hotel without restrictions that would interfere with your performance under the Franchise Agreement, subject to the reasonable requirements of any financing secured by your Hotel. You will provide us copies of all documentation reflecting your right to possession of the Premises at any time upon our request. Further, if you do not own the Premises, you must provide us with copies of any amendment, addendum, extension, or other modification to the Lease within five days following execution.
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Sonesta Select Sonesta Essential franchisees who do not own the hotel premises must provide a copy of their lease to the franchisor. This lease must grant the franchisee the right to enter into the Franchise Agreement. This documentation must be submitted prior to the opening date, but no later than 30 days after the effective date of the agreement. Failure to provide the lease within this timeframe may result in immediate termination of the Franchise Agreement.
Sonesta Select Sonesta Essential also requires franchisees to represent and warrant that they are entitled to possess the premises for the duration of the Franchise Agreement. This possession must be without restrictions that would interfere with their performance under the agreement, although reasonable requirements of any hotel financing are permitted. Franchisees must also provide copies of any documentation reflecting their right to possess the premises at any time upon the franchisor's request.
Furthermore, if a Sonesta Select Sonesta Essential franchisee does not own the premises, they are obligated to provide copies of any amendments, addenda, extensions, or other modifications to the lease within five days of their execution. This ensures that the franchisor remains informed of any changes to the franchisee's lease agreement that could impact their ability to operate the hotel. The FDD also states that Sonesta Select Sonesta Essential's involvement in location approval is solely for their benefit, and franchisees are advised to seek advice from their own professional advisors regarding the purchase of the premises or the lease agreement.