What is the franchisee's obligation to provide documentation of their right to possession of the premises to Sonesta Simply Suites?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
is 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 acknowledge and agree that any of our involvement in the approval of location is for our sole benefit. You further acknowledge that you have been advised to obtain the advice of your own professional advisors in connection with your purchase of the Premises or the Lease, as applicable.
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- Construction Work. You agree to take all action necessary to perform the development and construction of your Hotel, renovation, furnishing, equipping, acquisition of supplies and the implementation of the Plans (as defined below) ("Construction Work") all in accordance with the terms and conditions of the Franchise Agreement, within the time frames that we specify. You will be solely responsible for obtaining all necessary licenses, permits and zoning variances required for the Construction Work. Before you begin the Construction Work, you will submit copies of applicable permits, licenses and zoning variances to us for approval. We may assign you a project manager or onboarding specialist.
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Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, franchisees must provide documentation proving their right to possess the premises. If constructing a new Brand Hotel, the franchisee must deliver to Sonesta Simply Suites, before construction commences, and no later than 30 days after the effective date of the franchise agreement, either a deed reflecting ownership of the premises or a copy of the lease for the premises that allows them to enter into the Franchise Agreement.
If converting an existing hotel into a Brand Hotel, the franchisee must deliver to Sonesta Simply Suites, prior to the Opening Date, and no later than 30 days after the Effective Date, either a deed reflecting ownership of the Premises or a copy of the lease for the Premises that allows them the right to enter into the Franchise Agreement.
Sonesta Simply Suites can immediately terminate the Franchise Agreement if the franchisee fails to provide the Deed or Lease in a timely manner. Throughout the term of the Franchise Agreement, the franchisee must warrant that they are entitled to possession of the premises and their hotel without restrictions that would interfere with their performance under the Franchise Agreement, subject to the reasonable requirements of any financing secured by their hotel. The franchisee must provide copies of all documentation reflecting their right to possession of the premises at any time upon Sonesta Simply Suites's request. If the franchisee does not own the premises, they must provide copies of any amendment, addendum, extension, or other modification to the lease within five days following execution.