What is the significance of the 'INITIAL' lines in the Sonesta Simply Suites FDD receipt acknowledgment?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
REPRESENTATIONS AND ACKNOWLEDGMENT STATEMENT
DO NOT SIGN THIS QUESTIONNAIRE IF YOU ARE LOCATED IN, YOUR HOTEL WILL BE LOCATED IN, OR THE FRANCHISE GRANTED IS SUBJECT TO THE FRANCHISE REGISTRATION OR DISCLOSURE LAWS IN: CALIFORNIA, HAWAII, ILLINOIS, INDIANA, MARYLAND, MICHIGAN, MINNESOTA, NEW YORK, NORTH DAKOTA, RHODE ISLAND, SOUTH DAKOTA, VIRGINIA, WASHINGTON, OR WISCONSIN.
The purpose of this Statement is to demonstrate to Sonesta RL Hotels Franchising Inc. ("Franchisor") that the person(s) signing below ("I," "me" or "my"), whether acting individually or on behalf of any legal entity established to acquire the franchise rights, (a) fully understands that the purchase of a Sonesta® Simply Suites franchise to operate as a Sonesta Simply Suites-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:
Source: Item 23 — RECEIPTS (FDD pages 80–246)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the 'INITIAL' lines on the Representations and Acknowledgment Statement for Sonesta Simply Suites signify that the franchisee has read and understood each specific representation before agreeing to the overall statement. By initialing each line, the franchisee confirms their understanding and acceptance of the terms and conditions outlined in that particular section. This process is designed to ensure that the franchisee is fully aware of their rights, responsibilities, and obligations before entering into the franchise agreement.
The Representations and Acknowledgment Statement serves to demonstrate that the franchisee understands that investing in a Sonesta Simply Suites franchise is a significant, long-term commitment with associated risks. It also confirms that the franchisee is not relying on any statements or promises not explicitly included in the Franchise Disclosure Document (FDD). This acknowledgment is crucial for Sonesta Simply Suites, as it protects them from potential future claims that the franchisee was misled or unaware of the terms of the agreement.
However, the FDD stipulates that if the Sonesta Simply Suites hotel will be located in, or the franchise granted is subject to the franchise registration or disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin, then the franchisee should not sign the questionnaire. Additionally, for those states, no statement, questionnaire, or acknowledgment signed by a franchisee shall waive any claims under any applicable state franchise law, including fraud in the inducement, or disclaiming reliance on any statement made by the franchisor.