What is the purpose of the Representations and Acknowledgment Statement for a Sonesta Simply Suites franchise?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
The purpose of this Statement is to demonstrate to Sonesta RL Hotels Franchising Inc. ("Franchisor") that the person(s) signing below ("I," "me" or "my"), whether acting individually or on behalf of any legal entity established to acquire the franchise rights, (a) fully understands that the purchase of a Sonesta® Simply Suites franchise to operate as a Sonesta Simply Suites-branded hotel is a significant long-term commitment, complete with its associated risks, and (b) is not relying on any statements, representations, promises or assurances that are not specifically set forth in Franchisor's Franchise Disclosure Document and Exhibits (collectively, the "FDD") in deciding to purchase the franchise.
Source: Item 23 — RECEIPTS (FDD pages 80–246)
What This Means (2025 FDD)
According to the 2025 FDD, the Representations and Acknowledgment Statement for Sonesta Simply Suites is designed to confirm that the prospective franchisee understands the significant, long-term commitment and associated risks involved in purchasing a Sonesta Simply Suites franchise. It serves as a declaration by the person(s) acquiring the franchise rights that they are not relying on any statements, representations, promises, or assurances that are not explicitly outlined in the Franchise Disclosure Document (FDD) and its exhibits. This statement is intended to protect Sonesta RL Hotels Franchising Inc. from potential future claims that the franchisee was misled or given information outside of the official FDD.
However, the FDD states that this statement should not be signed if the franchisee or the hotel's location is subject to franchise registration or disclosure laws in specific states, including California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin. This suggests that in these states, such a statement might not be legally enforceable or could conflict with state franchise laws designed to protect franchisees.
In essence, the Representations and Acknowledgment Statement aims to ensure that franchisees enter the agreement with a clear understanding of the investment and its risks, based solely on the information provided in the FDD. Prospective franchisees should carefully review the FDD and seek legal counsel to fully understand their rights and obligations, especially if they are located in one of the listed states where the statement's enforceability may be limited.