What pre-opening obligations, in addition to compliance with the Franchise Agreement, must a Sonesta Simply Suites franchisee fulfill before opening their hotel?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to compliance with and completion of all pre-opening obligations in the Franchise Agreement, you will not open your Hotel under the Marks until we confirm in writing that the Construction Work has been completed to our satisfaction in our sole discretion.
If you fail to commence construction by the Construction Work Commencement Date, or if you fail to complete the Construction Work by the Construction Work Completion Date, it will be considered a default under Section 14.B.(2) of the Franchise Agreement.
-
- Opening.
You must complete construction of your Hotel and open for business within 18 months of breaking ground on your Hotel, and in any event, no later than 30 months from the Effective Date, unless a different date is specified in Exhibit A to the Franchise Agreement.
However, you will not open your Hotel unless and until you receive our written authorization to do so.
We will only authorize your Hotel to open when we, at our sole discretion, are satisfied that you have complied with all the terms and conditions set forth in the Franchise Agreement, including but not limited to Section 2.E, and this Rider.
Opening your Hotel before we authorize you to open will constitute unauthorized use of the Marks and a material breach of the Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, a franchisee must fulfill several obligations beyond general compliance with the Franchise Agreement before opening their hotel. The franchisee cannot open their hotel until Sonesta Simply Suites provides written confirmation that the construction work is completed to their satisfaction. Opening the hotel before receiving this authorization constitutes unauthorized use of the Marks and a material breach of the Franchise Agreement.
Construction of the hotel must be completed and open for business within 18 months of breaking ground, and no later than 30 months from the Effective Date of the Franchise Agreement, unless a different date is specified in Exhibit A. The franchisee must also notify Sonesta Simply Suites in writing upon completion of the construction work. Sonesta Simply Suites retains the sole right to determine whether the construction work meets the standards outlined in the Franchise Agreement and Brand Standards.
If the franchisee fails to commence construction by the Construction Work Commencement Date or complete the Construction Work by the Construction Work Completion Date, it is considered a default under Section 14.B.(2) of the Franchise Agreement. To request an extension of the Construction Work Completion Date, the franchisee must submit a written request before the deadline, and any approval will be provided in writing with a new Construction Work Completion Date. These construction-related obligations are in addition to all other pre-opening requirements specified in the Franchise Agreement.