What is management responsible for maintaining regarding internal control for Sonesta Simply Suites?

According to the 2025 FDD, Sonesta Simply Suites's management is responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements. This internal control system should ensure that the financial statements are free from material misstatement, whether due to fraud or error.

This responsibility means that Sonesta Simply Suites's management must establish and uphold procedures and policies that provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles in the United States of America.

For a prospective franchisee, this indicates that Sonesta Simply Suites places importance on accurate and reliable financial reporting. The presence of a well-maintained internal control system can help ensure the financial health and stability of the company, which can indirectly benefit franchisees through better brand reputation and support.

However, it is important to note that while the auditor obtains an understanding of internal control, they do not express an opinion on its effectiveness. Therefore, franchisees should still conduct their own due diligence and seek professional advice to assess the financial risks and opportunities associated with investing in a Sonesta Simply Suites franchise.