What risks are associated with purchasing a Sonesta Simply Suites franchise?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
tes-branded hotel is a significant long-term commitment, complete with its associated risks, and (b) is not relying on any statements, representations, promises or assurances that are not specifically set forth in Franchisor's Franchise Disclosure Document and Exhibits (collectively, the "FDD") in deciding to purchase the franchise.
In that regard, I represent to Franchisor and acknowledge that:
| I understand that buying a franchise is not a guarantee of success. Purchasing or establishing any business is risky, and the success or failure of the franchise is subject to many variables such as my skills and abilities (and those of my partners, officers, employees), the time my associates and I devote to the business, competition, interest rates, the economy, inflation, operation costs, location, lease terms, the market place generally and other economic and business factors. I am aware of and am willing to undertake these business risks. I understand that the success or failure of my business will depend primarily upon my efforts and not those of Franchisor. | INITIAL: |
|---|---|
| I received a copy of the FDD, including the Franchise Agreement, at least 14 calendar | INITIAL: |
| days before I executed the Franchise Agreement. I understand that all of my rights and | |
| responsibilities and those of Franchisor in connection with the franchise are set forth in | |
| these documents and only in these documents. | |
| I acknowledge that I have had the | |
| opportunity to personally and carefully review these documents and have, in fact, done so. | |
| I have been advised to have professionals (such as lawyers and accountants) | |
| review the | |
| documents for me and to have them help me understand these documents. I have also | |
| been advised to consult with other franchisees regarding the risks associated with the | |
| purchase of the franchise. | |
| Neither the Franchisor nor any of its officers, employees or agents (including any franchise | INITIAL: |
| broker) has made a statement, promise or assurance to me concerning any matter related | |
| to the franchise (including those regarding advertising, marketing, training, support service | |
| or assistance provided by Franchisor) that is contrary to, or different from, the information | |
| contained in the FDD. | |
| My decision to purchase the franchise has not been influenced by any oral | INITIAL: |
| representations, assurances, warranties, guarantees or promises whatsoever made by the | |
| Franchisor or any of its officers, employees or agents (including any franchise broker), | |
| including as to the likelihood of success of the franchise. | |
| I have made my own independent determination as to whether I have the capital necessary | INITIAL: |
| to fund the business and my living expenses, particularly during the start-up phase. |
| PLEASE READ THE FOLLOWING QUESTION CAREFULLY. THEN SELECT YES OR NO AND PLACE YOUR INITIALS WHERE INDICATED.
Source: Item 23 — RECEIPTS (FDD pages 80–246)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites FDD, purchasing a franchise involves inherent risks, as success is not guaranteed. The success of a Sonesta Simply Suites franchise is subject to various factors, including the franchisee's skills, abilities, time commitment, and those of their employees. External factors such as competition, interest rates, economic conditions, inflation, operating costs, location, lease terms, and overall market conditions also play a significant role. Therefore, prospective franchisees must acknowledge and be prepared to undertake these business risks.
The FDD emphasizes that the success or failure of the Sonesta Simply Suites business depends primarily on the franchisee's efforts, not solely on the franchisor's actions. The document also includes a representation and acknowledgment statement where the franchisee confirms they understand that purchasing a Sonesta Simply Suites franchise is a significant long-term commitment with associated risks. This statement also confirms that the franchisee is not relying on any assurances or representations outside of what is documented in the FDD.
Furthermore, the FDD includes a clause stating that if a franchisee buys the franchise, their contact information may be disclosed to other potential buyers when they leave the franchise system. This could potentially lead to unwanted solicitations or competitive disadvantages. The document also stipulates that franchisees in certain states, including California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin, cannot waive claims under state franchise laws or disclaim reliance on statements made by the franchisor, ensuring some level of protection.