factual

Does the release from a Sonesta Simply Suites franchisee cover claims related to the ownership of the hotel?

Sonesta_Simply_Suites Franchise · 2025 FDD

Answer 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.

Source: Item 23 — RECEIPTS (FDD pages 80–246)

What This Means (2025 FDD)

According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, the release provided by the franchisee does cover claims related to the ownership of the hotel. The release includes claims arising out of or relating to the development, ownership, or operation of the hotel that the franchisee operates under the Franchise Agreement. This means that by signing the release, the franchisee agrees to release Sonesta RL Parties from any and all claims related to the ownership of the hotel.

The release extends to all claims, demands, causes of action, suits, duties, obligations, actions, liabilities, defenses, or damages of every kind and nature, whether at law or in equity, and known or unknown. This comprehensive waiver is intended to prevent franchisees from suing Sonesta Simply Suites for any reason related to the franchise agreement or the operation of the hotel. The release also includes a covenant not to sue, which further protects Sonesta Simply Suites from legal action.

However, the FDD stipulates that if the hotel is located in California or if the franchisee is a resident of California, a specific acknowledgment regarding Section 1542 of the California Civil Code is required. This section pertains to the waiver of unknown claims. Additionally, the release does not apply to any liability under the Maryland Franchise Registration and Disclosure Law if the hotel is located in Maryland or if the franchisee is a resident of Maryland. Prospective franchisees should carefully review these conditions and consult with legal counsel to fully understand the implications of signing the release.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.