What is the 'Management Company Joinder' for Sonesta Simply Suites, and who signs it?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
MANAGEMENT COMPANY JOINDER
The party signing below is the Management Company and agrees that it is jointly and severally liable with you for the timely and complete performance of all your obligations under this Agreement, except with respect to the actual payment of any amounts due to any third parties, our affiliates or us pursuant to this Agreement (however, the Management Company will be obligated to ensure that such payments are made by you), as it may be modified from time to time (with or without the Management Company's consent), and is bound by all the terms of this Agreement as if it were you under this Agreement.
MANAGEMENT COMPANY: Drivet Names of Land Futitu Print Name of Legal Entity By: Name: Title: _ Date:
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, the Management Company Joinder is a contract that makes the Management Company jointly and severally liable with the franchisee for the timely and complete performance of all obligations under the Franchise Agreement. This excludes the actual payment of amounts due to third parties, Sonesta Simply Suites' affiliates, or Sonesta Simply Suites itself. However, the Management Company is obligated to ensure these payments are made by the franchisee. The Management Company is bound by all the terms of the Franchise Agreement as if it were the franchisee.
The Management Company Joinder is signed by the Management Company. The document includes fields for the Management Company's legal entity name, the printed name of the legal entity, the signature of an authorized representative, the name and title of the representative, and the date of signing.
This joinder ensures that Sonesta Simply Suites has recourse to both the franchisee and their management company for upholding the franchise agreement. It also stipulates that if a franchisee wishes to engage a Management Company after the effective date of the Franchise Agreement, or change the Management Company, they must obtain prior written consent from Sonesta Simply Suites. If Sonesta Simply Suites approves a change in the Management Company, the new Management Company must execute the Management Company Joinder to the Franchise Agreement.