What is included in the property improvement plan (PIP) for a Sonesta Select Sonesta Essential hotel?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Property Improvement Plan. You or your Principal and the Management Company, if applicable as provided under Section 8.D, will meet with us to conduct an initial inspection of the Premises and develop a property improvement plan (the "PIP") of improvements required to meet Brand Standards. We may assign you a project manager or onboarding specialist. The PIP is attached as Exhibit D-1(A) to the Franchise Agreement and is incorporated herein by reference. On or prior to the Renovation Work Completion Date (as defined below), you will cause the renovation and construction work required in the PIP (the "Renovation Work") to be completed. You agree, at your expense, to (1) obtain any and all required zoning changes, planning consents, building, utility, sign and business permits and licenses, liquor license and any other consents, permits and licenses necessary to lawfully open and operate your Hotel; (2) construct all required improvements in compliance with the PIP and any other construction plans and specifications approved by us; (3) decorate your Hotel in compliance with plans and specifications approved by us; and (4) obtain all customary contractors' sworn statements and partial and final waivers of lien for construction, remodeling, decorating and installation services. You agree to use the vendor(s) we select, if any (which may include us or our affiliates), for design, engineering, construction management and purchasing services in connection with the conversion of your Hotel.
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, the property improvement plan (PIP) outlines the improvements required for the premises to meet the brand's standards. The PIP is attached as Exhibit D-1(A) to the Franchise Agreement and is incorporated by reference.
As a franchisee, you, along with your Principal and the Management Company (if applicable), will meet with Sonesta Select Sonesta Essential to conduct an initial inspection of the premises and develop the PIP. Sonesta Select Sonesta Essential may assign a project manager or onboarding specialist to assist you. The franchisee is responsible for completing the renovation and construction work outlined in the PIP by the Renovation Work Completion Date.
The franchisee is responsible for all expenses related to the Renovation Work. This includes obtaining necessary zoning changes, planning consents, building, utility, sign and business permits and licenses, and liquor licenses. The franchisee must also construct all required improvements in compliance with the PIP and any other construction plans and specifications approved by Sonesta Select Sonesta Essential, as well as decorate the hotel according to approved plans and specifications. Additionally, the franchisee must obtain all customary contractors' sworn statements and partial and final waivers of lien for construction, remodeling, decorating, and installation services. Sonesta Select Sonesta Essential may require the franchisee to use specific vendors, potentially including Sonesta Select Sonesta Essential or its affiliates, for design, engineering, construction management, and purchasing services related to the hotel's conversion.