Is a release required from the owners of a Sonesta Simply Suites franchise in addition to the franchisee?

According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, Sonesta RL Hotels Franchising Inc. is entitled to a release and covenant not to sue from the franchisee's owners, in addition to the franchisee themselves. The FDD states that the owners, by their signatures, grant the release and covenant not to sue, similar to what the franchisee provides. This requirement is part of the broader agreement where both the franchisee and their owners relinquish any current or future claims against Sonesta RL Parties related to the Franchise Agreement or the operation of the hotel.

This requirement means that anyone with an ownership stake in the Sonesta Simply Suites franchise must also agree to release Sonesta RL Hotels Franchising Inc. from potential liabilities. This ensures that all parties involved in the franchise operation are aligned in their commitment and understanding of the terms. The release covers a wide range of claims, whether known or unknown, arising from the franchise relationship, including those related to the Franchise Agreement itself or the operation of the hotel.

Prospective franchisees should carefully review this requirement with their legal counsel to fully understand the implications of the release and covenant not to sue. It is important for all owners to be aware of the rights they are waiving and the potential impact on their ability to pursue claims against Sonesta RL Hotels Franchising Inc. in the future. This requirement is not uncommon in franchising, as franchisors often seek to protect themselves from potential litigation from all parties involved in the franchise operation.