Under what circumstances is the Rider signed in relation to the Sonesta Simply Suites Franchise Agreement?
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 Franchise Disclosure Document, a Rider is signed concurrently with the Franchise Agreement. This Rider is attached to and becomes a part of the Franchise Agreement.
The FDD indicates specific instances that necessitate the signing of a Rider. For franchisees establishing or maintaining a hotel in Virginia, a Rider is required. Similarly, if any part of the franchise offering or sales activity occurred in Rhode Island, or if the franchisee is domiciled in Rhode Island, a Rider is necessary. An Illinois Rider is required if any of the offering or sales activity relating to the Franchise Agreement occurred in Illinois, and/or the Hotel that you will operate under the Franchise Agreement will be located in Illinois, and/or you are domiciled in Illinois.
These Riders often include state-specific addenda to ensure compliance with local franchise laws. For example, the Rhode Island Rider includes language pertaining to the Rhode Island Franchise Investment Act, which voids any franchise agreement provisions that restrict jurisdiction or venue to a forum outside of Rhode Island or require the application of another state's laws. Similarly, the Virginia Rider addresses the Virginia Retail Franchising Act concerning the cancellation of a franchise without reasonable cause. The FDD also includes a Rider specifically for use in Washington.