Under what circumstances is the Rider to the Franchise Agreement for Sonesta Simply Suites signed?
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, a rider to the franchise agreement is signed in specific situations, primarily related to the location of the hotel or the franchisee's domicile. For instance, a rider is required if the hotel will be established or maintained in Virginia. Similarly, if any of the offering or sales activity relating to the Franchise Agreement occurred in Rhode Island, and/or the franchisee is domiciled in Rhode Island, a rider is necessary.
Additionally, a rider is signed if any of the offering or sales activity relating to the Franchise Agreement occurred in Illinois, or if the hotel that the franchisee will operate under the Franchise Agreement will be located in Illinois, or if the franchisee is domiciled in Illinois. These riders are annexed to and form part of the Franchise Agreement, indicating they are integral to the agreement under these specific conditions.
These riders modify specific sections of the standard franchise agreement to comply with state laws. For example, the Virginia rider includes language about the Virginia Retail Franchising Act, which protects franchisees from termination without reasonable cause. Similarly, the Rhode Island rider includes language about the Rhode Island Franchise Investment Act, which voids any provision restricting jurisdiction or venue to a forum outside of Rhode Island. These state-specific riders ensure that the Sonesta Simply Suites franchise agreement adheres to local regulations, providing additional protections or clarifications for franchisees operating in those states.