What is the definition of 'Entity' in the Sonesta Select Sonesta Essential agreement?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
D. Representations and Warranties. You warrant, represent, and agree that:
(1) If you are at any time a corporation, limited liability company, or partnership (each, an "Entity"), you will have the authority to execute, deliver, and perform your obligations under this Agreement and all related agreements and are duly organized or formed and are and will, throughout the Term, remain validly existing and in good standing under the laws of the state of your incorporation or formation and the laws of the state in which your Hotel is located;
(2) If you are an Entity, your organizational documents, operating agreement, or partnership agreement, as applicable, will recite that this Agreement restricts the issuance and tr
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, the Sonesta Select Sonesta Essential franchise agreement defines "Entity" as a corporation, limited liability company, or partnership.
For a prospective franchisee, this means that if you choose to operate your Sonesta Select Sonesta Essential franchise through one of these business structures, you will be bound by specific representations and warranties within the franchise agreement. Specifically, you must have the authority to fulfill your obligations under the agreement and related documents.
Furthermore, as an Entity, you must be duly organized or formed and remain in good standing under the laws of the state of incorporation or formation, as well as the laws of the state where your hotel is located, throughout the term of the agreement. The organizational documents must also state that the franchise agreement restricts the issuance and transfer of ownership interests.