What is the meaning of 'Opening Date' in the context of a Sonesta Simply Suites franchise?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
s, representations, and warranties contained in this Agreement, you and we agree as follows:
1. GRANT OF FRANCHISE; NO EXCLUSIVITY; RESERVATION OF RIGHTS.
A. Grant of Franchise. Subject to this Agreement's terms, we grant you a limited and non-exclusive franchise (the "Franchise") to establish and operate your Hotel under the Franchise System at
the Premises, and to use the Franchise System and the Brand Standards (as defined in Section 2.A) in its operation, for a term beginning on the Opening Date (as defined in Section 2.E) and expiring 20 years from the Opening Date, unless sooner terminated under Section 14 of this Agreement (the "Term").
You agree to, at all times, faithfully, honestly, and diligently perform your obligations under this Agreement and to use your best efforts to promote your Hotel. You agree to use the Premises only for your Hotel, and, once it opens for business, to continuously operate your Hotel in accordance with this Agreement for the duration of the Term. You agree not to conduct the business of your Hotel at any location other than the Premises.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, the 'Opening Date' marks the commencement of the franchise term. Sonesta Simply Suites grants franchisees a limited and non-exclusive franchise to operate a hotel under the Franchise System for a term beginning on the Opening Date and expiring 20 years from that date, unless the agreement is terminated earlier.
However, a franchisee cannot simply decide when to open. The franchisee must complete construction and fulfill all pre-opening obligations outlined in the Franchise Agreement. The franchisee can only open the Sonesta Simply Suites hotel after receiving written authorization from Sonesta Simply Suites. Sonesta Simply Suites will grant this authorization only when satisfied that the franchisee has complied with all terms and conditions of the Franchise Agreement.
Opening a Sonesta Simply Suites hotel before receiving authorization from Sonesta Simply Suites constitutes unauthorized use of the brand's Marks and a material breach of the Franchise Agreement. This highlights the importance of adhering to Sonesta Simply Suites's procedures and obtaining explicit approval before commencing operations to avoid potential legal and financial repercussions.