What is the meaning of 'Premises' in the context of a Sonesta Simply Suites franchise?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- (7) You (or any legal entity that you own, or if you are an Entity, any of your owners) are not party to any agreement with any third-party, which grants you (or any legal entity that you own, or if you are an Entity, any of your owners) the right to operate a business at the Premises of your Hotel under a brand or trademark or service mark other than the Marks, except for any lease that you may have previously entered into to obtain the rights to occupy the Premises, and your execution, delivery, and performance of your obligations under this Agreement and each of the other documents and instruments required hereby do not and will not violate or result in a breach or default under any applicable law or any agreement to which you (or any legal entity that you own, or if you are an Entity, any of your owners) are a party or by which you (or any legal entity that you own, or if you are an Entity, any of your owners) are bound or that requires the approval or consent of any other person.
2. PREMISES, CONVERSION OR CONSTRUCTION OBLIGATIONS AND OPENING OF YOUR HOTEL.
A. Generally. You may operate your Hotel only at the Premises. You have selected the site for the Premises. You must cause your Hotel to meet the mandatory specifications, standards, operating procedures, and rules (the "Brand Standards") that we prescribe for equipping, furnishing, supplying, and maintaining Brand Hotels in accordance with this Agreement.
Our acceptance of the Premises indicates only that we believe that the site meets our current acceptable criteria, which have been established for our own purposes. Applying criteria that have appeared effective with other sites and premises might not accurately reflect the potential for all sites and
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, the 'Premises' refers to the physical location where the franchisee is authorized to operate their Sonesta Simply Suites hotel. The franchisee must operate their hotel only at the specified Premises, and this location must meet the brand's mandatory standards for equipping, furnishing, supplying, and maintaining the hotel.
The franchisee is responsible for selecting the site for the Premises. Sonesta Simply Suites' acceptance of the Premises indicates only that the site meets their current criteria, which are established for their own purposes. The FDD emphasizes that the franchisor's criteria may not accurately reflect the potential for all sites, and demographic or other factors could change even after approval, altering the site's potential.
Sonesta Simply Suites advises franchisees to conduct their own independent investigation of the site's suitability for a Brand Hotel. The franchisee must provide either a deed reflecting ownership of the Premises or a copy of the lease that allows them the right to enter into the Franchise Agreement. Failure to provide the Deed or Lease within thirty days after the Effective Date may result in immediate termination of the Franchise Agreement. Throughout the term of the Franchise Agreement, the franchisee must ensure they are entitled to possession of the Premises without restrictions that would interfere with their performance under the agreement.