Which section of the Sonesta Simply Suites Franchise Agreement is modified by this Rider?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS RIDER is by and between SONESTA RL HOTELS FRANCHISING INC. a Washington corporation with its principal business address at 400 Centre Street, Newton, Massachusetts 02458 ("we," |
|---|
| "us," or "our"), and |
| , whose |
| principal business address is |
| ("you" or "your"). |
| 1. |
| BACKGROUND. We and you are parties to that certain Franchise Agreement dated |
| (the "Franchise Agreement") that has been signed concurrently with the |
| signing of this Rider. This Rider is annexed to and forms part of the Franchise Agreement. This Rider is |
| being signed because (a) |
| any of the offering or sales activity relating to the Franchise Agreement occurred |
| in Illinois and |
| the Hotel |
| that you will operate under the Franchise Agreement will be located in Illinois, and/or |
| (b) you are domiciled in Illinois. |
| 2. |
| GOVERNING LAW. The first sentence of Section |
| 17.G of the Franchise Agreement is |
| deleted and replaced with the following: |
Source: Item 23 — RECEIPTS (FDD pages 80–246)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites FDD, the Rider modifies specific sections of the Franchise Agreement depending on the state in which the franchisee is located. For instance, for franchisees in Illinois, the rider modifies Section 17.G regarding governing law. In Minnesota, Section 17.I concerning waiver of punitive damages, jury trial, and class action bar is deleted if required by the Minnesota Franchise Law. Additionally, Section 17.J, related to injunctive relief, is deleted and replaced with a new section. Section 17.L is also modified to include information about the statute of limitations under Minnesota law. For franchisees in Virginia, Section 14.A regarding termination by either party is modified.
For franchisees in Rhode Island, the rider adds language to the end of Sections 17.G and 17.H of the Franchise Agreement, referencing Section 19-28.1-14 of the Rhode Island Franchise Investment Act, which voids provisions restricting jurisdiction or venue to outside the state or requiring application of other state's laws.
These modifications are included in the rider to ensure compliance with state-specific franchise laws. The rider is annexed to and forms part of the Franchise Agreement, and it is signed concurrently with the Franchise Agreement. The specific reason for signing the rider depends on factors such as the franchisee's domicile, the location of the hotel, or where the offering or sales activity occurred.
Prospective franchisees should carefully review the rider applicable to their state to understand how it modifies the standard Franchise Agreement. This ensures they are aware of their rights and obligations under the franchise agreement, as well as any state-specific protections or limitations that may apply.