What representations must the Assignee Parties make in the Agreement and Consent to Transfer for Sonesta Simply Suites?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) All of the representations and warranties made in this Agreement by the Franchisee Parties must be true and correct as of the Closing Date, and the Franchisee Parties further represent and warrant that, upon the consummation of the Transfer: (i) the Hotel's assets and the [Real Estate / Lease] will be held solely in the name of the Assignee, [and] (ii) neither Assignor nor Assignor Owner[s] provides Assignee or Assignee Owner[s] with any financing in connection with the Transfer[, and (iii) under the Lease, Assignee will have the right to occupy the Hotel's premises during the entire term of the New Franchise Agreement];
(b) Assignee Parties deliver to us a fully executed New Franchise Agreement and Guaranty and Assumption of Obligations;
(c) Franchisee Parties must provide us with executed versions of any other documents executed by Franchisee Parties to effect the Transfer, and all other information we request about the proposed Transfer, and such Transfer meets all of our requirements and will not adversely affect Assignee's operation of the Hotel;
Source: Item 23 — RECEIPTS (FDD pages 80–246)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, the Assignee must adhere to specific representations and warranties within the Agreement and Consent to Transfer. Specifically, all representations and warranties made by the Franchisee Parties in the Agreement must be true and correct as of the Closing Date. Furthermore, the Franchisee Parties must represent and warrant that upon the consummation of the Transfer: (i) the Hotel's assets and the [Real Estate / Lease] will be held solely in the name of the Assignee, [and] (ii) neither Assignor nor Assignor Owner[s] provides Assignee or Assignee Owner[s] with any financing in connection with the Transfer[, and (iii) under the Lease, Assignee will have the right to occupy the Hotel's premises during the entire term of the New Franchise Agreement].
In addition to these representations, the Assignee Parties are required to deliver a fully executed New Franchise Agreement and Guaranty and Assumption of Obligations to Sonesta Simply Suites. The Assignee Parties must also provide executed versions of any other documents executed by Franchisee Parties to effect the Transfer, along with any other information Sonesta Simply Suites requests regarding the proposed Transfer.
These conditions ensure that Sonesta Simply Suites maintains control over the transfer process and that the new franchisee (Assignee) meets the brand's standards and financial requirements. The representations and warranties protect Sonesta Simply Suites from potential liabilities or misrepresentations during the transfer. Prospective franchisees should carefully review these requirements and ensure they can comply with all conditions before proceeding with a transfer.