Where is the current form of guaranty attached in the Sonesta Simply Suites FDD?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- (4) If you are an Entity, each of your direct and indirect owners, with a twenty percent (20%) or more ownership interest in you, during the Term will execute a guaranty in the form we prescribe undertaking personally to be bound, jointly and severally, by all provisions of this Agreement and any ancillary agreements between you and us.
Our current form of guaranty is attached hereto as Exhibit C.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, the current form of guaranty is attached as Exhibit C. Specifically, if the franchisee is an entity, each direct and indirect owner with at least a 20% ownership interest must execute a guaranty in the form prescribed by Sonesta Simply Suites.
This requirement ensures that individuals with significant financial stakes in the franchise operation are personally liable for the franchise's obligations. This is a common practice in franchising, as it provides the franchisor with additional security and recourse in case of default or breach of contract by the franchisee entity.
Prospective Sonesta Simply Suites franchisees should carefully review Exhibit C to understand the full extent of the guaranty and their personal obligations. They should also consult with legal and financial advisors to assess the risks and implications of signing such a guaranty.