What is the timeframe after the Opening Date within which Sonesta Simply Suites will provide the Disbursement to the Maker?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
The Principal will be distributed to Maker ([each, a] "Disbursement") [within forty-five (45) days after the Opening Date] [in installments as of the dates set forth on Schedule A hereto] subject to the Disbursement Conditions. "Disbursement Conditions" shall mean, with respect to and as of the date of each Disbursement, if applicable, Maker has opened and is operating the Hotel in accordance with the Agreement; Maker and each of its guarantor's creditworthiness and financial condition is satisfactory to Holder in Holder's sole discretion; from the Opening Date through such Disbursement, there has been no material adverse change to the Hotel (including, but not limited to a decrease in Guest Rooms); Maker is in compliance with the terms and conditions of the Agreement, this Note, and any other agreement between Maker and Holder or its affiliates; and all required parties have executed a guaranty in a form acceptable to Holder.
Source: Item 23 — RECEIPTS (FDD pages 80–246)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, the Disbursement, which is the principal amount agreed to assist with the hotel's development or conversion to a Sonesta Simply Suites branded hotel, will be provided to the Maker within forty-five (45) days after the Opening Date. The disbursement may also be provided in installments based on a schedule.
However, this disbursement is subject to certain Disbursement Conditions. These conditions include the Maker opening and operating the hotel in accordance with the franchise agreement, the creditworthiness and financial condition of the Maker and its guarantors being satisfactory to the Holder, no material adverse change to the hotel occurring since the Opening Date, and the Maker being in compliance with all agreements with the Holder or its affiliates. Additionally, all required parties must have executed a guaranty in a form acceptable to the Holder.
Prospective franchisees should be aware that the actual receipt of the financial contribution is contingent upon meeting all these conditions, and failure to meet them could delay or prevent the disbursement. It is important to carefully review the franchise agreement and related documents to fully understand these conditions and their potential impact.