Who are the parties involved in the Rider agreement for a Sonesta Select Sonesta Essential franchise?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
anchise agreement or related agreements that prohibits the franchisee from communicating with or complaining to regulators is inconsistent with the express instructions in the Franchise Disclosure Document and is unlawful under RCW 19.100.180(2)(h).
Under the Washington Franchise Investment Protection Act, a "franchise broker" is defined as a person that engages in the business of the offer or sale of franchises. A franchise broker represents the franchisor and is paid a fee for referring prospects to the franchisor and/or selling the franchise. If a franchisee is working with a franchise broker, franchisees are advised to carefully evaluate any information provided by the franchise broker about a franchise.
THE FOLLOWING PAGES IN THIS EXHIBIT ARE STATE-SPECIFIC RIDERS TO THE FRANCHISE AGREEMENT
RIDER TO THE SONESTA RL HOTELS FRANCHISING INC. FRANCHISE AGREEMENT FOR USE IN ILLINOIS
| THIS RIDER is by and between SONESTA RL HOTELS FRANCHISING INC. a Washington corporation with its principal business address at 400 Centre Street, Newton, Massachusetts 02458 ("we," |
|---|
| "us," or "our"), and |
| , whose principal business address is |
| ("you" or "your"). |
Source: Item 23 — RECEIPTS (FDD pages 84–261)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, the Rider agreement for a Sonesta Select Sonesta Essential franchise is between Sonesta RL Hotels Franchising Inc., identified as "we," "us," or "our," and the franchisee, referred to as "you" or "your." The franchisor, Sonesta RL Hotels Franchising Inc., is described as a Washington corporation with its principal business address at 400 Centre Street, Newton, Massachusetts 02458. The franchisee's principal business address is to be specified in the Rider.
The Rider is annexed to and forms part of the Franchise Agreement, with the Rider being signed concurrently with the Franchise Agreement. The purpose of the Rider varies depending on the franchisee's location or activities. For instance, a Rider might be signed because the hotel will be located in a specific state, such as Minnesota, or because the franchisee is domiciled in a particular state, like Rhode Island. The Rider could also be required if any of the offering or sales activity related to the Franchise Agreement occurred in a specific state, such as Washington or Illinois.
These Riders modify the original franchise agreement to comply with specific state laws. For example, the Rider for franchisees in Rhode Island includes a clause stating that any provision in the franchise agreement restricting jurisdiction or venue to a forum outside of Rhode Island or requiring the application of the laws of another state is void with respect to a franchisee domiciled in Rhode Island. Similarly, the Rider for Virginia includes a clause referencing the Virginia Retail Franchising Act, which makes it unlawful for a franchisor to cancel a franchise without reasonable cause.