What is the significance of this rider to the Sonesta Simply Suites Franchise Agreement?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchises. A franchise broker represents the franchisor and is paid a fee for referring prospects to the franchisor and/or selling the franchise. If a franchisee is working with a franchise broker, franchisees are advised to carefully evaluate any information provided by the franchise broker about a franchise.
THE FOLLOWING PAGES IN THIS EXHIBIT ARE STATE-SPECIFIC RIDERS TO THE FRANCHISE AGREEMENT
RIDER TO THE SONESTA RL HOTELS FRANCHISING INC. FRANCHISE AGREEMENT FOR USE IN ILLINOIS
| 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: |
- G. Governing Law. Except to the extent governed by the Federal Arbitration Act, the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C. Sections 1051 et seq.), or other United States federal law, this Agreement or any related agreements, the Franchise, and all claims arising from the relationship between us (or any of our affiliates, and our and their respective owners, officers, directors, agents, representatives, and employees) and you (and your owners, guarantors, affiliates, and employees), whether couched in tort or
-
- CONSENT TO JURISDICTION. Section 17.H of the Franchise Agreement is deleted in its entirety.
contract, will be governed by the laws of the State of Illinois.
- WAIVER OF PUNITIVE DAMAGES AND JURY TRIAL, AND CLASS ACTION. The following language is added to the end of Section 17.I of the Franchise Agreement:
HOWEVER, THIS SECTION SHALL NOT ACT AS A CONDITION, STIPULATION OR PROVISION PURPORTING TO BIND ANY PERSON ACQUIRING ANY FRANCHISE TO WAIVE COMPLIANCE WITH ANY PROVISION OF THE ILLINOIS FRANCHISE DISCLOSURE ACT AT SECTION 705/41 OR ILLINOIS REGULATIONS AT SECTION 200.609, OR ANY OTHER LAW OF THE STATE OF ILLINOIS, TO THE EXTENT APPLICABLE.
- LIMITATIONS OF CLAIMS. The following language is added to the end of Section 17.L of the Franchise Agreement:
However, this Section shall not act as a condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with any provision of the Illinois Franchise Disclosure Act or any other law of the State of Illinois, to the extent applicable.
-
- ILLINOIS FRANCHISE DISCLOSURE ACT. The following language is added as Section 17.P of the Franchise Agreement:
- P. Illinois Franchise Disclosure Act. Section 41 of the Illinois Franchise Disclosure Act provides that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
Your rights upon termination and non-renewal of a franchise agreement are subject to sections 19 and 20 of the Illinois Franchise Disclosure Act.
(Remainder of page intentionally blank)
IN WITNESS WHEREOF, the parties have executed and delivered this Rider to be effective as of the effective date of the Franchise Agreement.
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RIDER TO THE SONESTA RL HOTELS FRANCHISING INC. FRANCHISE AGREEMENT FOR USE IN MARYLAND
| 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) |
Source: Item 23 — RECEIPTS (FDD pages 80–246)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites FDD, the franchise agreement may include state-specific riders that modify the standard agreement to comply with state franchise laws. These riders are annexed to and form part of the Franchise Agreement, indicating their legal importance. The FDD includes specific examples of riders for Illinois, Virginia, Rhode Island, Minnesota, and Washington, suggesting that these states have particular legal considerations that necessitate modifications to the standard franchise agreement.
For Illinois, the rider is required if any offering or sales activity occurred in Illinois, the hotel will be located in Illinois, or the franchisee is domiciled in Illinois. The rider modifies the governing law provision of the franchise agreement. For Virginia, the rider is included because the hotel will be established or maintained in Virginia and adds language to the termination section of the agreement to comply with the Virginia Retail Franchising Act, which requires "reasonable cause" for termination.
For Rhode Island, the rider is required if the franchisee is domiciled in Rhode Island, the hotel will be located in Rhode Island, or any offering or sales activity occurred in Rhode Island. This rider adds language to the governing law and consent to jurisdiction sections of the franchise agreement, citing Section 19-28.1-14 of the Rhode Island Franchise Investment Act, which voids any provision restricting jurisdiction or venue to a forum outside of Rhode Island or requiring the application of another state's laws. These riders ensure that the Sonesta Simply Suites franchise agreement adheres to the specific regulations and legal protections afforded to franchisees in these states.