For a Sonesta Simply Suites franchise, does the FDD state that purchasing a franchise is a guarantee of success?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| I understand that buying a franchise is not a guarantee of success. Purchasing or establishing any business is risky, and the success or failure of the franchise is subject to many variables such as my skills and abilities (and those of my partners, officers, employees), the time my associates and I devote to the business, competition, interest rates, the economy, inflation, operation costs, location, lease terms, the market place generally and other economic and business factors. I am aware of and am willing to undertake these business risks. I understand that the success or failure of my business will depend primarily upon my efforts and not those of Franchisor. | INITIAL: |
|---|---|
| I received a copy of the FDD, including the Franchise Agreement, at least 14 calendar | INITIAL: |
| days before I executed the Franchise Agreement. I understand that all of my rights and | |
| responsibilities and those of Franchisor in connection with the franchise are set forth in | |
| these documents and only in these documents. | |
| I acknowledge that I have had the | |
| opportunity to personally and carefully review these documents and have, in fact, done so. | |
| I have been advised to have professionals (such as lawyers and accountants) | |
| review the | |
| documents for me and to have them help me understand these documents. I have also | |
| been advised to consult with other franchisees regarding the risks associated with the | |
| purchase of the franchise. | |
| Neither the Franchisor nor any of its officers, employees or agents (including any franchise | INITIAL: |
| broker) has made a statement, promise or assurance to me concerning any matter related | |
| to the franchise (including those regarding advertising, marketing, training, support service | |
| or assistance provided by Franchisor) that is contrary to, or different from, the information | |
| contained in the FDD. | |
| My decision to purchase the franchise has not been influenced by any oral | INITIAL: |
| representations, assurances, warranties, guarantees or promises whatsoever made by the | |
| Franchisor or any of its officers, employees or agents (including any franchise broker), | |
| including as to the likelihood of success of the franchise. | |
| I have made my own independent determination as to whether I have the capital necessary | INITIAL: |
| to fund the business and my living expenses, particularly during the start-up phase. |
Source: Item 23 — RECEIPTS (FDD pages 80–246)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, buying a franchise is not a guarantee of success. The FDD emphasizes that purchasing or establishing any business, including a Sonesta Simply Suites franchise, involves risk. The success or failure of the franchise depends on many factors. These factors include the franchisee's skills and abilities, the time and effort dedicated to the business, competition, interest rates, economic conditions, inflation, operating costs, location, lease terms, and general market conditions.
The document makes it clear that the success or failure of the Sonesta Simply Suites business depends primarily on the franchisee's efforts, not those of the franchisor. Prospective franchisees must acknowledge that they are aware of and willing to undertake these business risks. This acknowledgment is part of a larger statement where the franchisee confirms they have received and reviewed the FDD, understand their rights and responsibilities, and have been advised to seek professional counsel.
This disclosure is a standard practice in franchising. Franchisors are legally required to provide potential franchisees with a realistic view of the business and its associated risks. The inclusion of this statement protects Sonesta Simply Suites from potential legal claims by franchisees who may experience financial losses. It also ensures that franchisees understand they are responsible for their business's performance.