What is the effect of the Rider on the Sonesta Select Sonesta Essential Franchise Agreement?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
IN WITNESS WHEREOF, the parties have executed and delivered this Rider to be effective as of the effective date of the Franchise Agreement.
SONESTA RL HOTELS FRANCHISING INC. [Franchisee Name]
RIDER TO THE SONESTA RL HOTELS FRANCHISING INC. FRANCHISE AGREEMENT FOR USE IN MARYLAND
THIS RIDER is by and between SONESTA RL HOTELS FRANCHISING INC. a Washington
Source: Item 23 — RECEIPTS (FDD pages 84–261)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, the Rider modifies the Sonesta Select Sonesta Essential Franchise Agreement to account for specific state laws. The Rider is signed concurrently with the Franchise Agreement and annexed to it, becoming a part of the agreement.
The FDD includes specific Riders for franchisees in Maryland, Minnesota, North Dakota, Rhode Island, Virginia and Washington. For example, the Rider for Maryland addresses aspects such as representations and warranties, releases, insolvency, governing law, consent to jurisdiction, and limitations of claims, adding provisions to specific sections of the Franchise Agreement to ensure compliance with the Maryland Franchise Registration and Disclosure Law. Similarly, the Rider for Minnesota modifies sections related to trademark disputes, waiver of punitive damages, jury trial, class action bar, injunctive relief, and limitations of claims, referencing Minnesota statutes and rules.
These Riders are crucial for franchisees as they tailor the standard Franchise Agreement to align with the legal requirements of their specific state. Without these Riders, certain provisions of the standard agreement might be unenforceable or violate state laws, potentially exposing the franchisee to legal risks. The Riders ensure that the franchisee's rights and obligations are clearly defined and protected under the laws of their state.