What is the relationship between the Rider and the Franchise Agreement for a Sonesta Simply Suites franchise?
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. Sections 1051 et seq.), or other United States federal law, this Agreement or any related agreements, the Franchise, and all claims arising from the relationship between us (or any of our affiliates, and our and their respective owners, officers, directors, agents, representatives, and employees) and you (and your owners, guarantors, affiliates, and employees), whether couched in tort or
-
- CONSENT TO JURISDICTION. Section 17.H of the Franchise Agreement is deleted in its entirety.
contract, will be governed by the laws of the State of Illinois.
- WAIVER OF PUNITIVE DAMAGES AND JURY TRIAL, AND CLASS ACTION. The following language is added to the end of Section 17.I of the Franchise Agreement:
HOWEVER, THIS SECTION SHALL NOT ACT AS A CONDITION, STIPULATION OR PROVISION PURPORTING TO BIND ANY PERSON ACQUIRING ANY FRANCHISE TO WAIVE COMPLIANCE WITH ANY PROVISION OF THE ILLINOIS FRANCHISE DISCLOSURE ACT AT SECTION 705/41 OR ILLINOIS REGULATIONS AT SECTION 200.609, OR ANY OTHER LAW OF THE STATE OF ILLINOIS, TO THE EXTENT APPLICABLE.
- LIMITATIONS OF CLAIMS. The following language is added to the end of Section 17.L of the Franchise Agreement:
However, this Section shall not act as a condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with any provision of the Illinois Franchise Disclosure Act or any other law of the State of Illinois, to the extent applicable.
-
- ILLINOIS FRANCHISE DISCLOSURE ACT. The following language is added as Section 17.P of the Franchise Agreement:
- P. Illinois Franchise Disclosure Act. Section 41 of the Illinois Franchise Disclosure Act provides that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
Your rights upon termination and non-renewal of a franchise agreement are subject to sections 19 and 20 of the Illinois Franchise Disclosure Act.
(Remainder of page intentionally blank)
IN WITNESS WHEREOF, the parties have executed and delivered this Rider to be effective as of the effective date of the Franchise Agreement.
| D-1 - 3 | ||
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| This document was 2do0w2nl5oa dFeDd frDom | f rEanxch.i mDp. c-o mF.r Aall nthce hinifsorem aAtiogn roen ethmis weenbsti te is published in good faith and for general information purpose only. |
Source: Item 23 — RECEIPTS (FDD pages 80–246)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, the Rider is an integral part of the Franchise Agreement. Specifically, the Rider is annexed to and forms a part of the Franchise Agreement.
The FDD includes several examples of state-specific Riders, such as those for Virginia, Minnesota, and Washington. These Riders are designed to address specific legal requirements or considerations within those states. For instance, the Rider for Virginia clarifies the grounds for termination under the Virginia Retail Franchising Act, while the Rider for Illinois addresses governing law based on where the franchise was offered or sold, where the hotel will be located, or where the franchisee is domiciled.
The Riders are executed and delivered to be effective as of the effective date of the Franchise Agreement, indicating that they come into effect simultaneously. This ensures that any state-specific modifications or additions are legally binding from the outset of the franchise relationship. The inclusion of state-specific riders is a common practice in franchising to ensure compliance with varying state laws and regulations.