If a Sonesta Simply Suites franchisee is domiciled in Rhode Island, does this rider apply?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchises. A franchise broker represents the franchisor and is paid a fee for referring prospects to the franchisor and/or selling the franchise. If a franchisee is working with a franchise broker, franchisees are advised to carefully evaluate any information provided by the franchise broker about a franchise.
THE FOLLOWING PAGES IN THIS EXHIBIT ARE STATE-SPECIFIC RIDERS TO THE FRANCHISE AGREEMENT
RIDER TO THE SONESTA RL HOTELS FRANCHISING INC. FRANCHISE AGREEMENT FOR USE IN ILLINOIS
| THIS RIDER is by and between SONESTA RL HOTELS FRANCHISING INC. a Washington corporation with its principal business address at 400 Centre Street, Newton, Massachusetts 02458 ("we," |
|---|
| "us," or "our"), and |
| , whose |
| principal business address is |
| ("you" or "your"). |
| 1. |
| BACKGROUND. We and you are parties to that certain Franchise Agreement dated |
| (the "Franchise Agreement") that has been signed concurrently with the |
| signing of this Rider. This Rider is annexed to and forms part of the Franchise Agreement. This Rider is |
| being signed because (a) |
| any of the offering or sales activity relating to the Franchise Agreement occurred |
| in Illinois and |
| the Hotel |
| that you will operate under the Franchise Agreement will be located in Illinois, and/or |
| (b) you are domiciled in Illinois. |
| 2. |
| GOVERNING LAW. The first sentence of Section |
| 17.G of the Franchise Agreement is |
| deleted and replaced with the following: |
- G. Governing Law. Except to the extent governed by the Federal Arbitration Act, the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C.
Source: Item 23 — RECEIPTS (FDD pages 80–246)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites FDD, a specific rider to the franchise agreement is required for use in Rhode Island. This rider applies if a franchisee is domiciled in Rhode Island, or if the hotel they will operate is located in Rhode Island, or if any of the offering or sales activity related to the franchise agreement occurred in Rhode Island.
The rider is an agreement between Sonesta RL Hotels Franchising Inc. and the franchisee. It is annexed to and forms part of the franchise agreement, indicating its legal significance.
One key provision in the Rhode Island rider addresses governing law and jurisdiction. It adds language to Sections 17.G and 17.H of the Franchise Agreement, referencing Section 19-28.1-14 of the Rhode Island Franchise Investment Act. This act stipulates that any provision in a franchise agreement that restricts jurisdiction or venue to a forum outside of Rhode Island, or requires the application of laws from another state, is void with respect to claims enforceable under the Act. This ensures that Rhode Island franchisees have the right to pursue claims under Rhode Island law within the state.