Under what condition is this rider being signed for a Sonesta Simply Suites franchise?
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 Sonesta Simply Suites FDD, a rider to the franchise agreement is required under specific conditions related to Illinois, Virginia, Rhode Island, Minnesota, and Washington. For Illinois, the rider is signed if any offering or sales activity related to the franchise occurred in Illinois, or if the hotel will be located in Illinois, or if the franchisee is domiciled in Illinois. For Virginia, the rider is required if the hotel will be established or maintained in Virginia. For Rhode Island, the rider is signed if the franchisee is domiciled in Rhode Island and the hotel will be located there, or if any franchise-related activities occurred in Rhode Island. There are also specific riders for Minnesota and Washington, but the conditions for their use are not specified in the provided excerpts.
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 of the franchise agreement. The Virginia rider adds language regarding termination rights, ensuring they align with the Virginia Retail Franchising Act. The Rhode Island rider addresses governing law and jurisdiction, citing the Rhode Island Franchise Investment Act.
Prospective Sonesta Simply Suites franchisees should pay close attention to these state-specific riders, as they can significantly impact their rights and obligations. It is essential to understand how state laws affect the franchise agreement and to seek legal counsel to ensure full compliance. The presence of these riders highlights the importance of understanding the regulatory landscape in the state where the franchise will operate.