If I construct a new Sonesta Select Sonesta Essential Hotel, what document must I execute?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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- Background. This Rider is annexed to and forms part of the Franchise Agreement. This Rider is being signed because you are constructing a new Brand Hotel, pursuant to the Franchise Agreement. Capitalized terms used, but not defined, herein shall have the meanings given them in the Franchise Agreement.
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- Interest in Premises. You must deliver to us, before you commence construction, 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.
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").
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, if you are constructing a new Brand Hotel, you will execute the New Construction Rider, attached hereto as Exhibit D-2, simultaneously with the Franchise Agreement. This rider is specific to new construction projects and outlines the obligations and requirements associated with building a new Sonesta Select or Sonesta Essential hotel.
The New Construction Rider is annexed to and forms part of the Franchise Agreement because you are constructing a new Brand Hotel, pursuant to the Franchise Agreement. Before construction commences, and no later than 30 days after the Effective Date, you must deliver to Sonesta Select Sonesta Essential 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”). Failure to provide the Deed or Lease timely may result in immediate termination of the Franchise Agreement.
Sonesta Select Sonesta Essential requires that you 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. If requested by Sonesta Select Sonesta Essential, you must provide 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.