Can a Sonesta Simply Suites franchisee assign claims that are released under the agreement?

According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, franchisees are prohibited from assigning or transferring claims that are released as part of the agreement. This is explicitly stated in Item 23, which discusses the releases and covenants not to sue.

The FDD states that the Releasing Parties (which include the franchisee and related parties) warrant and represent that they have not assigned or otherwise transferred any claims released within the agreement. This means a franchisee cannot transfer their rights to pursue a claim that they have already released to another party. This provision is designed to prevent third parties from later bringing claims against Sonesta RL Hotels Franchising Inc. based on issues that the franchisee has already settled and released.

This restriction on assignment is a standard practice in franchising to protect the franchisor from future liabilities related to past disputes. Prospective Sonesta Simply Suites franchisees should carefully consider the implications of this clause, as it limits their ability to transfer any potential claims they might have against the franchisor to another party. Franchisees should seek legal counsel to fully understand the scope of the release and its impact on their rights before signing the agreement.