Where can I find a copy of the RLHC guaranty related to the Sonesta Simply Suites franchise agreement?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Attached as Exhibit B to this disclosure document are the audited consolidated financial statements of our parent, RLHC and its subsidiaries, consisting of the consolidated balance sheets of RLHC as of December 31, 2024 and December 31, 2023, and the related consolidated statements of comprehensive income (loss), shareholders' equity, and cash flows for each of the three years in the period ended December 31, 2024.
SRLHF is a wholly-owned subsidiary of RLHC, and RLHC absolutely and unconditionally guarantees to assume the duties and obligations of SRLHF under the Franchise Agreements entered into while SRLHF is an affiliate of RLHC. A copy of the RLHC guaranty is attached as Exhibit C to this disclosure document.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, the RLHC (Red Lion Hotels Corporation) guaranty, ensuring SRLHF's (Sonesta RL Hotels Franchising Inc.) obligations under the franchise agreements, is included as Exhibit C to the disclosure document. SRLHF is identified as a wholly-owned subsidiary of RLHC. This guaranty applies while SRLHF remains an affiliate of RLHC, meaning that RLHC is committed to fulfilling the franchise agreement terms if SRLHF cannot.
For a prospective Sonesta Simply Suites franchisee, this guarantee provides an added layer of security. It means that the parent company, RLHC, is financially backing the obligations of its subsidiary, SRLHF, related to the franchise agreement. This is particularly important because RLHC has a larger financial base and a longer operating history than its subsidiary, SRLHF.
By including this guarantee, Sonesta Simply Suites aims to assure potential franchisees of the stability and reliability of the franchise system. Franchisees should carefully review Exhibit C to fully understand the scope and terms of the guaranty, including any limitations or conditions that may apply. Understanding the guarantor's obligations is a crucial part of assessing the overall risk and benefits of investing in a Sonesta Simply Suites franchise.