Under what circumstances is this rider to the Sonesta Simply Suites Franchise Agreement signed?
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.
Source: Item 23 — RECEIPTS (FDD pages 80–246)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, the rider to the Sonesta Simply Suites Franchise Agreement is signed concurrently with the Franchise Agreement. These riders are specific to certain states and address particular legal requirements or considerations within those jurisdictions.
For instance, a rider is required if the franchisee is domiciled in Illinois, or if any of the offering or sales activity related to the Franchise Agreement occurred in Illinois, and the hotel operated under the agreement will be located in Illinois. Similarly, a rider is necessary if the hotel will be established or maintained in Virginia. Another rider is required if the franchisee is domiciled in Rhode Island, or if the hotel will be located in Rhode Island, or if any offering or sales activity took place there.
These riders modify specific sections of the standard Franchise Agreement to comply with state laws. For example, the Illinois rider modifies the governing law section, while the Virginia rider adds language regarding termination rights under the Virginia Retail Franchising Act. The Rhode Island rider addresses jurisdiction and venue restrictions, ensuring compliance with the Rhode Island Franchise Investment Act.
Prospective Sonesta Simply Suites franchisees should carefully review Exhibit K of the FDD, which contains state-specific addenda and agreement riders, to understand how the standard Franchise Agreement is modified based on the state in which they will operate. This ensures they are aware of their rights and obligations under local laws.