What are the general obligations related to the conversion or construction of a Sonesta Select Sonesta Essential hotel?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Generally. You may operate your Hotel only at the Premises. You have selected the site for the Premises. You must cause your Hotel to meet the mandatory specifications, standards, operating procedures, and rules (the "Brand Standards") that we prescribe for equipping, furnishing, supplying, and maintaining Brand Hotels in accordance with this Agreement.
Our acceptance of the Premises indicates only that we believe that the site meets our current acceptable criteria, which have been established for our own purposes. Applying criteria that have appeared effective with other sites and premises might not accurately reflect the potential for all sites and premises, and demographic or other factors included in or excluded from our criteria could change, even after our approval of the Premises or, if applicable your conversion of your existing hotel to a Brand Hotel, altering the potential of a site and premises. The uncertainty and instability of these criteria are beyond our control, and we are not responsible if a site and premises we approve fail to meet your expectations. You acknowledge and agree that your acceptance of the Franchise at the Premises is based on your own independent investigation of the site's suitability for a Brand Hotel.
B. Conversion of Your Hotel. If you are converting an existing hotel into a Brand Hotel, you will execute the Conversion Rider, attached hereto as Exhibit D-1, simultaneously with this Agreement.
C. New Construction. If you are constructing a new Brand Hotel, you will execute the New Construction Rider, attached hereto as Exhibit D-2, simultaneously with this Agreement.
You are solely responsible for ensuring your Hotel and Construction Work comply in all respects with all public laws, bylaws, statutes, ordinances, orders, rules, regulations, permits, licenses, authorizations, directions and requirements of all governments and governmental authorities, which, now or hereafter, may apply to the construction, completion, equipping and opening of your Hotel and the operation of your Hotel, including environmental, zoning, building, and life safety. We have the right to, and you will arrange for us to, participate in all progress meetings during the Construction Work and to have access to your Hotel during reasonable business hours to inspect your Hotel, its construction, renovations, completion, furnishing and equipping. However, we are not obligated to participate in such progress
meetings, or to inspect your Hotel, and our participation and inspection is not to be considered as a representation of the adequacy of the construction, the structural integrity, or the sufficiency of mechanical and electrical systems for your Hotel or the Construction Work. Upon completion of the Construction Work and as a condition to opening of your Hotel under the Marks, if we so require, your architect, general contractor or other certified professional must provide us with a certificate stating that the as-built premises comply with, or do not require compliance with, the Americans with Disabilities Act and its architectural guidelines and all state and local codes for accessible facilities.
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- Commencement; Completion.
You must obtain all necessary insurance, including builder's risk, and all permits and certifications required for lawful construction of your Hotel, including zoning, access, sign, building permits, and fire certifications, and if requested by us, you will provide us copies of all such certificates of insurance, permits, and certifications.
You must commence construction of your Hotel within 12 months of the Effective Date of the Franchise Agreement unless a different date is specified in Exhibit A to the Franchise Agreement (the "Construction Work Commencement Date").
If you do not commence the Construction Work by the Construction Work Commencement Date, you must submit to us a written request to extend the Construction Work Commencement Date, together with a payment to us in the amount of $5,000; if we approve the extension request, we will provide you a written notice of approval, which notice will set the new Construction Work Commencement Date.
You are solely responsible for ensuring your Hotel and Renovation Work comply in all respects with all public laws, bylaws, statutes, ordinances, orders, rules, regulations, permits, licenses, authorizations, directions and requirements of all governments and governmental authorities, which, now or hereafter, may apply to the construction, completion, equipping and opening of your Hotel and the operation of your Hotel, including environmental, zoning, building, and life safety. We have the right to, and you will arrange for us to, participate in all progress meetings during the Renovation Work and to have access to your Hotel during reasonable business hours to inspect your Hotel, its construction, renovations, completion, furnishing and equipping. However, we are not obligated to participate in such progress meetings, or to inspect your Hotel, and our participation and inspection is not to be considered as a representation of the adequacy of the construction, the structural integrity, or the sufficiency of mechanical and electrical systems for your Hotel or the Renovation Work. Upon completion of the Renovation Work and as a condition to opening of your Hotel under the Marks, if we so require, your architect, general contractor or other certified professional must provide us with a certificate stating that the as-built premises comply with, or do not require compliance with, the Americans with Disabilities Act and its architectural guidelines and all state and local codes for accessible facilities.
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- Commencement; Completion.
You must obtain all necessary insurance, including builder's risk, and all permits and certifications required for lawful renovation of your Hotel, including zoning, access, sign, building permits, and fire certifications, and if requested by us, you will provide us copies of all such certificates of insurance, permits, and certifications.
You will continue the Renovation Work uninterrupted (except to the extent, and only while, continuation is rendered impossible by events beyond your control such as third party strikes; epidemics; pandemics; natural disasters including lightning strikes, hurricanes, earthquakes, tornadoes, landslides, or floods; war, whether declared or not; or governmental action or change in law ("Force Majeure Events")) until the Renovation Work is completed.
For purposes of this Section, Force Majeure Events do not include your own financial inability, inability to obtain financing, inability to obtain permits or any other events unique to you or your Hotel.
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, a franchisee operating a Sonesta Select Sonesta Essential hotel must operate the hotel only at the approved premises and ensure it meets the Brand Standards for equipping, furnishing, supplying, and maintaining the hotel. The franchisee is responsible for the site selection and acknowledges that Sonesta Select Sonesta Essential's acceptance of the premises is based on their criteria, which may not guarantee success and that the franchisee's decision is based on their own investigation of the site's suitability. If converting an existing hotel, the franchisee will execute a Conversion Rider. If constructing a new hotel, the franchisee will execute a New Construction Rider.
The Sonesta Select Sonesta Essential franchisee is responsible for complying with all applicable laws, bylaws, statutes, ordinances, orders, rules, regulations, permits, licenses, authorizations, directions, and requirements of governmental authorities related to the construction, completion, equipping, and opening of the hotel, including environmental, zoning, building, and life safety regulations. Sonesta Select Sonesta Essential has the right to participate in progress meetings and inspect the hotel during construction or renovations but is not obligated to do so, and their participation does not represent an endorsement of the construction's adequacy. Upon completion, a certified professional may be required to provide a certificate stating compliance with the Americans with Disabilities Act and all state and local codes for accessible facilities.
The franchisee must obtain all necessary insurance, including builder's risk, and all required permits and certifications, such as zoning, access, sign, building permits, and fire certifications. Construction must commence within 12 months of the Franchise Agreement's effective date, unless otherwise specified. Failure to commence construction within this timeframe requires a written request for an extension and a $5,000 payment to Sonesta Select Sonesta Essential for approval of the extension. For renovations, the franchisee must continue the work uninterrupted, except for events beyond their control like strikes or natural disasters, but not including financial inability or permitting issues. The franchisee must also meet with Sonesta Select Sonesta Essential to develop a property improvement plan (PIP) and complete the required renovation and construction work by the Renovation Work Completion Date. The franchisee is responsible for obtaining all necessary permits and licenses and constructing improvements in compliance with the PIP and approved plans.