What is the Property Improvement Plan (PIP) for a Sonesta Select Sonesta Essential franchise?
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.
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- Plans and Designs. You must submit to us your plans, layouts, specifications, and drawings for your Hotel (collectively, the "Plans"), and your plans, layouts, specifications, and drawings for the proposed furnishings, fixtures, equipment and décor of your Hotel (collectively, the "Designs") with respect to the Renovation Work. We may supply you with representative prototype guest room and public area plans and schematic building plans as a guide for preparation of the Plans and Designs. Our approval of such Plans and Designs does not warrant the depth of our analysis or assume any responsibility for the efficacy of the Plans and Designs, or the resulting Renovation Work. You acknowledge and agree that you will not rely upon any approval we may provide you for the Plans or Designs for any purpose whatsoever except compliance with our then prevailing Brand Standards.
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, the Property Improvement Plan (PIP) for a Sonesta Select Sonesta Essential franchise is a plan of improvements required to meet the brand's standards. Franchisees (or their 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 with the process. The PIP itself is attached as Exhibit D-1(A) to the Franchise Agreement.
The franchisee is responsible for completing the renovation and construction work outlined in the PIP by the Renovation Work Completion Date. This includes obtaining all necessary zoning changes, planning consents, building permits, utility permits, sign permits, 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.
Furthermore, the franchisee is responsible for obtaining 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 for design, engineering, construction management, and purchasing services, potentially including Sonesta Select Sonesta Essential or its affiliates. Franchisees must submit their plans, layouts, specifications, and drawings for the hotel and its furnishings to Sonesta Select Sonesta Essential for approval. While Sonesta Select Sonesta Essential may provide prototype plans as a guide, their approval does not guarantee the efficacy of the plans or assume responsibility for the resulting renovation work; the franchisee is ultimately responsible for ensuring compliance with brand standards.