For a Sonesta Select Sonesta Essential franchise in Maryland, what is the purpose of the Rider to the Franchise Agreement?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
- REPRESENTATIONS AND WARRANTIES: FURTHER ASSURANCES. The following is added to the end of Section 1.D of the Franchise Agreement:
The acknowledgements or representations of the franchisee made in this Agreement which disclaim the occurrence and/or acknowledge the non-occurrence of acts that could constitute a violation of the Franchise Law are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
- RELEASES. The following is added to the end of Sections 12.C(11) and 13.C of the Franchise Agreement:
Pursuant to COMAR 02.02.08.16L, any release required as a condition of renewal and/or assignment/transfer will not apply to claims arising under the Maryland Franchise Registration and Disclosure Law.
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- INSOLVENCY. The following is added to the end of Sections 14.B.(2).c and 14.B.(2).e of the Franchise Agreement:
- ; however, we and you acknowledge that certain aspects of this provision might not be enforceable under federal bankruptcy law (11 U.S.C. Sections 101 et seq.).
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- GOVERNING LAW. The following is added to the end of Section 17.G of the Franchise Agreement:
Maryland law will apply to claims arising under the Maryland Franchise Registration and Disclosure Law.
- CONSENT TO JURISDICTION. The following is added to the end of Section 17.H of the Franchise Agreement:
Notwithstanding the foregoing, you may bring an action in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
- LIMITATIONS OF CLAIMS. The following is added to the end of Section 17.J of the Franchise Agreement:
Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.
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 MINNESOTA
Source: Item 23 — RECEIPTS (FDD pages 84–261)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, the Rider to the Sonesta Select Sonesta Essential Franchise Agreement for use in Maryland addresses specific legal considerations related to franchising within the state. This rider supplements the standard franchise agreement to ensure compliance with the Maryland Franchise Registration and Disclosure Law. The Rider is signed by both Sonesta RL Hotels Franchising Inc. and the franchisee, becoming effective on the same date as the Franchise Agreement.
The Rider modifies certain sections of the standard Franchise Agreement to align with Maryland law. These modifications cover areas such as representations and warranties, releases, insolvency, governing law, consent to jurisdiction, and limitations of claims. For instance, it clarifies that franchisee acknowledgments do not waive liability under Maryland franchise law. It also ensures that any required releases upon renewal or transfer do not affect claims arising from the Maryland Franchise Registration and Disclosure Law.
Furthermore, the Rider specifies that Maryland law governs claims arising under the Maryland Franchise Registration and Disclosure Law, and allows franchisees to bring actions in Maryland for such claims. It also sets a three-year limitation for bringing claims under the Maryland Franchise Registration and Disclosure Law. These provisions collectively aim to protect the franchisee's rights and ensure that the franchise agreement adheres to Maryland's specific legal requirements for franchising.