Does the release from a Sonesta Simply Suites franchisee cover claims related to the operation of the hotel?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
you, on your own behalf and on behalf of your current and former parents, affiliates, and subsidiaries, and your and each of the foregoing person's or entity's respective agents, spouses, heirs, executors, administrators, principals, attorneys, partners, owners, officers, directors, employees, representatives, predecessors, successors, and assigns (collectively, the "Releasing Parties"), hereby fully and forever unconditionally release and discharge us and our current and former parents, subsidiaries, and affiliates, and our and each of such foregoing entity's respective current and former owners, officers, directors, employees, managers, agents, representatives, predecessors, successors, and assigns (collectively, the "Sonesta RL Parties") of and from any and all claims, demands, causes of action, suits, duties, obligations, actions, liabilities, defenses or damages of every kind and nature whatsoever (collectively, "Claims") whether at law or in equity, and known or unknown, that any of the Releasing Parties now has, ever had, or, but for this document, hereafter would or could have against any of the Sonesta RL Parties, including, without limitation, Claims arising out of or relating to any relationship or transaction with any of the Sonesta RL Parties, however characterized or described, from the beginning of time until the date of your signature below, including, without limitation, any and all Claims in any way arising out of or relating to the Franchise Agreement, the relationship created by the Franchise Agreement, or the development, ownership, or operation of your Hotel that you operate under the Franchise Agreement. You, on behalf of yourself and the other Releasing Parties, further covenant not to sue any of the Sonesta RL Parties on any of the Claims released by this paragraph, and warrant and represent that the Releasing Parties have not assigned or otherwise transferred any Claims released by this paragraph.
Source: Item 23 — RECEIPTS (FDD pages 80–246)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, the release provided by the franchisee does cover claims related to the operation of the hotel. The franchisee, along with their affiliates, releases Sonesta RL Parties from all claims and liabilities arising out of or relating to the Franchise Agreement, including those related to the development, ownership, or operation of the hotel. This release extends from the beginning of time until the date the franchisee signs the agreement.
This means that once the release is signed, the franchisee waives their right to sue Sonesta Simply Suites for any past or present issues related to the hotel's operation, potentially including issues that were unknown at the time of signing. The franchisee also agrees not to sue Sonesta Simply Suites on any of the released claims and confirms that they have not transferred any of these claims to another party.
However, if the Sonesta Simply Suites hotel is located in California, or if the franchisee is a resident of California, they are required to acknowledge that they are giving up rights to claims that they may not even be aware of. They must also acknowledge that they have consulted with legal counsel and understand the implications of waiving California Civil Code Section 1542, which protects against unknowingly releasing claims. Similarly, if the hotel is in Maryland or the franchisee resides there, the release does not apply to liabilities under the Maryland Franchise Registration and Disclosure Law.
Prospective Sonesta Simply Suites franchisees should carefully review the release and covenant not to sue with their legal counsel to fully understand the scope of claims they are waiving and the implications for their rights, especially considering the specific state addenda that may apply.