Where can I find the current form of guaranty for Sonesta Select Sonesta Essential?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are an Entity, each of your direct and indirect owners, with a twenty percent (20%) or more ownership interest in you, during the Term will execute a guaranty in the form we prescribe undertaking personally to be bound, jointly and severally, by all provisions of this Agreement and any ancillary agreements between you and us.
Our current form of guaranty is attached hereto as Exhibit C.
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, the current form of guaranty that Sonesta Select Sonesta Essential requires its owners to execute is attached as Exhibit C. Specifically, if the franchisee is a corporation, limited liability company, or partnership and if each of the direct and indirect owners has at least 20% ownership interest in the franchisee, each owner must execute a guaranty in the form that Sonesta Select Sonesta Essential prescribes.
There are two different guaranty forms included as exhibits. Exhibit C is titled "Guaranty of Performance" and is signed by Red Lion Hotels Corporation, guaranteeing the performance of Sonesta RL Hotels Franchising Inc. Exhibit C also includes a "Guaranty and Assumption of Obligations" to be signed by the franchisee.
Prospective franchisees should carefully review Exhibit C with their legal counsel to understand the obligations and liabilities they will be undertaking by signing the guaranty. It is important to note that the guaranty is a legally binding document, and franchisees should be fully aware of the implications before signing.