What is the purpose of the initial inspection of the premises for a Sonesta Select Sonesta Essential franchise?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
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 initial inspection of the premises is conducted to develop a property improvement plan. Franchisees, along with their principal and management company if applicable, will meet with Sonesta Select Sonesta Essential to inspect the premises.
The purpose of this inspection is to create a property improvement plan, or PIP, which outlines the improvements needed to meet the brand's standards. Sonesta Select Sonesta Essential may assign a project manager or onboarding specialist to assist with this process. The PIP is included as Exhibit D-1(A) to the Franchise Agreement.
Following the creation of the PIP, franchisees are responsible for completing the renovation and construction work outlined in the plan by the Renovation Work Completion Date. This includes obtaining necessary permits and licenses, constructing improvements according to the PIP, and decorating the hotel in compliance with Sonesta Select Sonesta Essential's approved plans and specifications. Franchisees may also be required to use specific vendors selected by Sonesta Select Sonesta Essential for design, engineering, construction management, and purchasing services during the hotel conversion.