When does the Sonesta Simply Suites Franchise Agreement become effective?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- M. Agreement Effectiveness. This Agreement shall not be effective until accepted by us as evidenced by dating and signing by an officer or other duly authorized representative of ours. Notwithstanding that this Agreement shall not be effective until signed by us, we reserve the right to make the effective date of this Agreement the date on which you signed the Agreement.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, the Franchise Agreement's effective date is determined by Sonesta RL Hotels Franchising Inc. as evidenced by the dating and signing of the agreement by an officer or other authorized representative. However, Sonesta Simply Suites reserves the right to make the effective date the date on which the franchisee signed the agreement, regardless of when Sonesta Simply Suites signs it.
This means that while the agreement isn't technically in force until Sonesta Simply Suites accepts it, they can retroactively set the effective date back to when the franchisee signed. This could have implications for the franchisee, as obligations and timelines could be triggered from that earlier date.
Prospective Sonesta Simply Suites franchisees should pay close attention to the signing dates and ensure they understand when their obligations begin. It would be prudent to clarify with Sonesta Simply Suites the specific conditions that determine the effective date to avoid any potential misunderstandings or disputes later on.