What is the auditor required to communicate with those charged with governance regarding Sonesta Simply Suites?

According to the 2025 FDD, the auditor for Sonesta Simply Suites' parent company, RLHC, has specific communication responsibilities with those in charge of governance. These communications include the planned scope and timing of the audit. This means the auditor must inform the governance structure about when the audit will occur and what areas it will cover.

The auditor must also communicate significant audit findings. This implies that any important issues or discrepancies discovered during the audit process must be reported to the governance structure. Additionally, the auditor is required to communicate certain internal control-related matters identified during the audit. This involves reporting any weaknesses or deficiencies in the company's internal controls that were found while conducting the audit.

For a potential Sonesta Simply Suites franchisee, this indicates that the financial audits are thorough and transparent, with key findings and internal control issues being communicated to the appropriate governing bodies. This level of oversight can provide a degree of confidence in the financial stability and reporting practices of the parent company, RLHC, and by extension, the Sonesta Simply Suites brand.