What is the purpose of the Representations and Acknowledgment Statement for a Sonesta Select Sonesta Essential franchise?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
REPRESENTATIONS AND ACKNOWLEDGMENT STATEMENT
DO NOT SIGN THIS QUESTIONNAIRE IF YOU ARE LOCATED IN, YOUR HOTEL WILL BE LOCATED IN, OR THE FRANCHISE GRANTED IS SUBJECT TO THE FRANCHISE REGISTRATION OR DISCLOSURE LAWS IN: CALIFORNIA, HAWAII, ILLINOIS, INDIANA, MARYLAND, MICHIGAN, MINNESOTA, NEW YORK, NORTH DAKOTA, RHODE ISLAND, SOUTH DAKOTA, VIRGINIA, WASHINGTON, OR WISCONSIN.
The purpose of this Statement is to demonstrate to Sonesta RL Hotels Franchising Inc. ("Franchisor") that the person(s) signing below ("I," "me" or "my"), whether acting individually or on behalf of any legal entity established to acquire the franchise rights, (a) fully understands that the purchase of a franchise to operate as a Sonesta® Select-branded hotel or a Sonesta® Essential-branded hotel is a significant long-term commitment, complete with its associated risks, and (b) is not relying on any statements, representations, promises or assurances that are not specifically set forth in Franchisor's Franchise Disclosure Document and Exhibits (collectively, the "FDD") in deciding to purchase the franchise.
In that regard, I represent to Franchisor and acknowledge that:
Source: Item 23 — RECEIPTS (FDD pages 84–261)
What This Means (2025 FDD)
According to the 2025 FDD, the Representations and Acknowledgment Statement for Sonesta Select Sonesta Essential aims to confirm that the prospective franchisee understands the significant, long-term commitment and associated risks involved in purchasing a franchise. It serves to verify that the franchisee is not making the decision based on any representations, promises, or assurances that are not explicitly outlined in the Franchise Disclosure Document (FDD) and its exhibits. This statement is designed to protect Sonesta Select Sonesta Essential from potential future claims that the franchisee was misled or relied on information outside of the official FDD.
By signing the Representations and Acknowledgment Statement, the franchisee acknowledges that they have not relied on any external claims or promises not included in the FDD. This is a common practice in franchising to ensure that franchisees are making informed decisions based on the documented information provided by the franchisor. The statement helps to create a clear understanding of the agreement and the franchisee's responsibilities, reducing the likelihood of misunderstandings or disputes later on.
It is important to note that this statement is not to be signed if the franchisee or the hotel's location is subject to franchise registration or disclosure laws in specific states, including California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin. This suggests that in these states, additional legal protections may be in place that prevent the franchisor from using such a statement to waive certain franchisee rights or disclaim reliance on franchisor statements. Prospective franchisees should carefully review this statement and understand its implications before signing, especially in the listed states.