What is included in the property improvement plan (PIP) for a Sonesta Simply Suites franchise?
Sonesta_Simply_Suites 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.
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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 pages 79–80)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, the property improvement plan (PIP) outlines the improvements required for a location to meet the brand's standards. Franchisees (or their Principal and the Management Company, if applicable) will meet with Sonesta Simply Suites representatives to conduct an initial inspection of the premises and develop the PIP. A project manager or onboarding specialist may be assigned to the franchisee.
The franchisee is responsible for completing the renovation and construction work outlined in the PIP by the Renovation Work Completion Date. This includes obtaining necessary zoning changes, permits, and licenses to lawfully operate the hotel. The franchisee must also construct all required improvements in compliance with the PIP and any other construction plans and specifications approved by Sonesta Simply Suites, as well as decorate the hotel according to approved plans and specifications.
Sonesta Simply Suites may require the franchisee to use specific vendors for design, engineering, construction management, and purchasing services related to the conversion of the hotel. The franchisee must submit plans, layouts, specifications, and drawings for the hotel and its furnishings to Sonesta Simply Suites for approval. While Sonesta Simply Suites may provide prototype plans as a guide, their approval does not guarantee the efficacy of the plans or assume responsibility for the renovation work. The PIP is attached as Exhibit D-1(A) to the Franchise Agreement and is incorporated by reference.