What representation and warranty does a Sonesta Simply Suites franchisee make regarding possession of the premises throughout the term of the Franchise Agreement?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Interest in Premises. You must deliver to us, prior to the Opening Date, and in any event no later than thirty (30) days after the Effective Date, either a deed reflecting your ownership of the Premises (the "Deed") or a copy of your lease for the Premises that allows you the right to enter into the Franchise Agreement (the "Lease"). If you fail to timely provide us the Deed or Lease, we may immediately terminate the Franchise Agreement. You represent and warrant that, throughout the Term of the Franchise Agreement, you will be entitled to possession of the Premises and your Hotel without restrictions that would interfere with your performance under the Franchise Agreement, subject to the reasonable requirements of any financing secured by your Hotel. You will provide us copies of all documentation reflecting your right to possession of the Premises at any time upon our request. Further, if you do not own the Premises, you must provide us with copies of any amendment, addendum, extension, or other modification to the Lease within five days following execution.
You acknowledge and agree that any of our involvement in the approval of location is for our sole benefit. You further acknowledge that you have been advised to obtain the advice of your own professional advisors in connection with your purchase of the Premises or the Lease, as applicable.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, if a franchisee is converting an existing hotel into a Sonesta Simply Suites location, they must provide either a deed reflecting ownership or a lease that allows them to enter into the Franchise Agreement. This documentation must be provided prior to the opening date, but no later than 30 days after the effective date of the agreement. Failure to provide this documentation allows Sonesta Simply Suites to terminate the Franchise Agreement immediately.
The franchisee represents and warrants that they will be entitled to possession of the premises throughout the term of the Franchise Agreement. This possession must be without restrictions that would interfere with their performance under the Franchise Agreement, although it is subject to the reasonable requirements of any financing secured by the hotel.
Furthermore, the franchisee must provide copies of all documentation reflecting their right to possession of the premises at any time upon Sonesta Simply Suites's request. If the franchisee does not own the premises, they must provide copies of any amendment, addendum, extension, or other modification to the lease within five days following execution. Sonesta Simply Suites involvement in the approval of the location is solely for their benefit, and the franchisee acknowledges that they have been advised to obtain advice from their own professional advisors regarding the purchase of the premises or the lease.