Can Sonesta Simply Suites inspect my hotel without prior notice?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
st, you will provide current financial information for your owners and guarantors sufficient to demonstrate such owners' and guarantors' ability to satisfy their financial obligations under their individual guaranties.
11. INSPECTIONS AND AUDITS.
- A. Our Right to Inspect your Hotel. To determine whether you and your Hotel are complying with this Agreement and all Brand Standards, we and our designated agents or representatives may at all times and without prior notice to you:
- (1) inspect your Hotel;
- (2) photograph your Hotel and observe and videotape the operation of your Hotel for consecutive or intermittent periods we deem necessary;
- (3) remove samples of any products and supplies;
- (4) inspect your Computer System, including hardware, software, security, configurations, connectivity and data access, and other technology used in the operation of your Hotel:
- (5) interview the Management Company, personnel, and customers of your Hotel;
- (6) inspect and copy any books, records, and documents relating to the operation of your Hotel including tax returns and financial statements for your Hotel; and
- (7) contract with third parties to conduct mystery-shopper visits or other market-research testing, and quality assurance inspections at your Hotel.
If we exercise any of the foregoing rights, we will not interfere unreasonably with the operation of your Hotel. You acknowledge that your obligation to comply with the Brand Standards is unconditional. You agree to cooperate with us fully. You agree to present to your customers the evaluation forms that we periodically prescribe and to participate and request your customers to participate in any surveys performed by or for us. We retain the right to enforce, at our discretion, the Brand Standards as we deem necessary or appropriate in furtherance of our interest in the Brand Hotels. You agree to reimburse us for our
personnels' and designees' travel and meal expenses in connection with the inspection or re-inspection of your Hotel. You will not be required to provide more than two (2) nights' accommodations at your Hotel, free of charge, to our representatives in connection with an inspection, except with respect to any reinspection made necessary due to us or our designated representatives being prevented from properly inspecting any or all of your Hotel (including because you or your personnel refuse entry to any part of the Hotel), for which you must provide accommodations, free of charge, to our representatives for the number of nights necessary for us or our representatives to complete such reinspection.
Our Right to Audit. We and our designated agents or representatives may at any time during your business hours, and without prior notice to you, examine your Hotel, bookkeeping, and accounting records for your Hotel, and sales and income tax records and returns, and other records.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, Sonesta Simply Suites has the right to inspect your hotel without prior notice. Specifically, Sonesta Simply Suites and its representatives can inspect your hotel at any time to ensure compliance with the Franchise Agreement and Brand Standards.
This inspection can include various activities such as photographing the hotel, observing and videotaping operations, removing product samples, and inspecting the computer system. They can also interview personnel and customers, inspect and copy records, and contract with third parties to conduct mystery-shopper visits or other market research.
Sonesta Simply Suites also has the right to audit your hotel's financial records without prior notice during business hours. This audit can be performed remotely or electronically. If an audit reveals an understatement of Gross Rooms Revenue, you must pay the Royalty and Brand Promotion Fee due on the understated amount, plus service charges and interest. If the understatement exceeds two percent (2%) of the reported amount, or if the audit was necessary due to your failure to provide required information, you must reimburse Sonesta Simply Suites for the costs of the examination.