When are unauthorized opening damages due for a Sonesta Simply Suites franchise?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS (Note 1) |
|---|---|---|---|
| Unauthorized Opening Damages | $5,000 per day that your Hotel is open without authorization and our costs, including attorneys' fees | Upon demand | If you open your Hotel before we authorize it to open as a Brand Hotel, you must pay us liquidated damages to compensate us for damage to our Marks. You also must reimburse us for our costs of enforcing our rights. |
Source: Item 6 — OTHER FEES (FDD pages 25–36)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, unauthorized opening damages are due upon demand. This means that if a franchisee opens their Sonesta Simply Suites hotel before receiving authorization from the franchisor, they will be required to pay liquidated damages.
The amount of these damages is $5,000 per day for each day the hotel operates without authorization. In addition to these daily damages, the franchisee is also responsible for reimbursing Sonesta Simply Suites for any costs incurred in enforcing their rights, including attorney's fees.
This policy is designed to protect Sonesta Simply Suites' brand and marks by ensuring that all locations meet the required standards before opening to the public. The "upon demand" payment term means Sonesta Simply Suites can request immediate payment of these damages, which could create a significant financial burden for a franchisee who opens prematurely. Franchisees should ensure they have written authorization before commencing operations to avoid these penalties.