Under what circumstances is the Rider required for a Sonesta Select Sonesta Essential franchise agreement?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
- | | TERMINATION BY EITHER PARTY. The following language is added to Section 14.A of | | the Franchise Agreement: | | Under Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor | | to cancel a franchise without reasonable cause. If any grounds for default or termination | | stated in the Franchise Agreement does not constitute "reasonable cause," as that term | | may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision | | may not be enforceable. |
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the effective date of the Franchise Agreement. SONESTA RL HOTELS FRANCHISING INC. By: __________________________________ [Franchisee Name] By:
IN WITNESS WHEREOF, the parties have executed and delivered this Rider to be effective as of
Name: Title:
Name: Title:
RIDER TO THE SONESTA RL HOTELS FRANCHISING INC. FRANCHISE AGREEMENT AND RELATED AGREEMENTS FOR USE IN WASHINGTON
| 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"). |
| 1. |
| BACKGROUND. We and you are parties to that certain Franchise Agreement dated |
| (the "Franchise Agreement") that has been signed concurrently |
| with the signing of this Rider. This Rider is annexed to and forms part of the Franchise Agreement. This |
| Rider is being signed because (a) Franchisee is domiciled in the State of Washington; and/or (b) the Hotel |
| that Franchisee will operate under the Franchise Agreement will be located in Washington; and/or (c) any |
| of the offering or sales activity relating to the Franchise Agreement occurred in Washington. |
- WASHINGTON LAW. The following paragraphs are added to the end of the Franchise Agreement:
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, chapter 19.100 RCW will prevail.
RCW 19.100.180 may supersede provisions in the franchise agreement or related agreements concerning your relationship with the franchisor, including in the areas of termination and renewal of your franchise. There may also be court decisions that supersede the franchise agreement or related agreements concerning your relationship with the franchisor. Franchise agreement provisions, including those summarized in Item 17 of the Franchise Disclosure Document, are subject to state law.
In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation. In addition, if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
A release or waiver of rights in the franchise agreement or related agreements purporting to bind the franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act or any rules or orders thereunder is void except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel, in accordance with RCW 19.100.220(2).
Source: Item 23 — RECEIPTS (FDD pages 84–261)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Sonesta Select Sonesta Essential requires a rider to the franchise agreement under specific circumstances, primarily related to state laws and regulations. These riders modify certain sections of the standard franchise agreement to comply with the franchise laws of specific states.
For instance, if a franchisee is domiciled in Washington, operates a hotel in Washington, or any franchise-related activity occurred in Washington, a rider is required. Similarly, riders are necessary for franchisees in North Dakota, Maryland, and Minnesota. These riders address various legal aspects, such as waivers of punitive damages, jury trials, class action bars, injunctive relief, and limitations of claims, ensuring compliance with state-specific franchise laws.
The inclusion of these state-specific riders is a common practice in franchising to adapt the standard franchise agreement to the legal requirements of different states. Prospective Sonesta Select Sonesta Essential franchisees should carefully review the rider applicable to their state to understand any modifications to the standard agreement and how these changes affect their rights and obligations. This ensures that the franchise agreement complies with local laws and protects both the franchisor and the franchisee.