What documentation, including insurance certificates, must a Sonesta Simply Suites franchisee provide before opening?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Within 10 days of the Effective Date, and in any event, prior to opening your Hotel as a Brand Hotel, you must provide us certificates of insurance showing compliance with the insurance requirements. The certificate of insurance must include a statement that the policies will not be canceled without at least 30 days' prior written notice to us. Upon our request, you must supply us with copies of all insurance policies and proof of payment. You also must deliver renewal certificates to us not less than 10 days prior to each insurance policy's renewal date.
E. Business Opening. You agree not to open your Hotel until:
- (1) we notify you in writing that your Hotel meets our Brand Standards and specifications;
- (2) you have obtained all applicable licenses and permits;
- (3) you have complied with our training and brand introduction requirements (unless we have agreed in writing to allow you to complete them after the Opening Date);
- (4) you hire a staff to operate your Hotel, and train such staff to protect the Marks in compliance with the Brand Standards;
- (5) you have complied with all your development obligations specified in Exhibit D-1 or Exhibit D-2, as applicable, and we notify you in writing that your Renovation Work or Construction Work, as applicable, has been completed to our satisfaction;
- (6) you obtain and install the Computer System to our standards and specifications;
- (7) the Initial Fee has been paid in full and you pay other amounts then due to us and our affiliates; and
- (8) you provide us with all requested documentation, including but not limited to certificates for all required insurance policies.
You agree to open your Hotel for business by the date set forth on Exhibit A (the "Opening Date"), unless we otherwise agree in writing. If you are acquiring an existing Brand Hotel, the Opening Date will be the date you close on the acquisition of the existing Brand Hotel. If you fail to open your Hotel under the Marks by the Opening Date, you will pay to us, as damages for failure to open on time and not as a penalty, our then-current Opening Date rescheduling fee (currently up to $5,000).
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, prior to opening a hotel, a franchisee must provide all requested documentation, which includes certificates for all required insurance policies.
In addition to providing insurance documentation, a Sonesta Simply Suites franchisee must also meet several other conditions before opening their hotel. These include receiving written notification from Sonesta Simply Suites that the hotel meets brand standards, obtaining all applicable licenses and permits, and complying with training and brand introduction requirements. The franchisee must also hire and train staff to protect the brand's trademarks and comply with brand standards, fulfill all development obligations outlined in Exhibit D-1 or D-2, and ensure the computer system is installed according to Sonesta Simply Suites's standards.
Furthermore, the franchisee must have fully paid the initial fee and any other outstanding amounts owed to Sonesta Simply Suites and its affiliates. The franchisee is expected to open the hotel for business by the date specified in Exhibit A, referred to as the "Opening Date." Failure to open by this date may result in the franchisee paying a rescheduling fee, which is currently up to $5,000.
Prospective franchisees should carefully review Exhibits A, D-1, and D-2 of the Franchise Agreement to fully understand the opening date, development obligations, and all associated requirements. It is also important to maintain open communication with Sonesta Simply Suites to ensure all conditions are met and all necessary documentation is provided in a timely manner to avoid potential delays or fees.