Under what conditions does Sonesta Simply Suites require a general release from the franchisee and their owners?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| Sonesta RL Hotels Franchising Inc. ("we," "us," or "our") and the undersigned franchisee, |
|---|
| ("you" or "your"), currently are parties to a certain Franchise Agreement (the "Franchise |
| Agreement") dated |
| , |
| . You have asked us to take the following action |
| or to agree to the following request: [insert as appropriate] |
| We have the right |
| under the Franchise Agreement to obtain a general release from you (and, if applicable, your owners) as a |
| condition of taking this action or agreeing to this request. Therefore, we are willing to take the action or |
| agree to the request specified above if you (and, if applicable, your owners) give us the release and |
| covenant not to sue provided below in this document. You (and, if applicable, your owners) are willing to |
| give us the release and covenant not to sue provided below as partial consideration for our willingness to |
| take the action or agree to the request described above. |
Source: Item 23 — RECEIPTS (FDD pages 80–246)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, Sonesta RL Hotels Franchising Inc. has the right to obtain a general release from the franchisee and their owners as a condition of taking a specific action or agreeing to a request made by the franchisee. This means that if a franchisee asks Sonesta Simply Suites to take a certain action or agree to a specific request, Sonesta Simply Suites can require the franchisee (and their owners, if applicable) to sign a general release and covenant not to sue as a condition of granting the request. The franchisee's agreement to provide this release serves as partial consideration for Sonesta Simply Suites' willingness to act on the franchisee's request.
The general release means the franchisee and their affiliates release Sonesta RL Parties from all claims, demands, causes of action, suits, duties, obligations, actions, liabilities, defenses or damages of every kind and nature whatsoever, whether at law or in equity, and known or unknown. The release extends from the beginning of time until the date of signing, and includes claims arising from the Franchise Agreement, the relationship created by it, or the hotel's development, ownership, or operation. The franchisee also agrees not to sue Sonesta RL Parties on any of the released claims and warrants that these claims have not been assigned or transferred to others.
However, the FDD also specifies some limitations to these general releases. For franchisees operating hotels in California or residing in California, they acknowledge Section 1542 of the California Civil Code, which states that a general release does not cover claims the releasing party doesn't know or suspect to exist but would have materially affected the settlement if known. Franchisees in this situation also acknowledge that they have consulted with legal counsel and understand the implications of waiving this right. Additionally, any general release required does not apply to any liability under the Maryland Franchise Registration and Disclosure Law if the hotel is located in Maryland or the franchisee is a resident of Maryland. Similar protections may exist based on the applicability of the Minnesota Franchise Act.
Prospective franchisees should carefully consider the implications of providing a general release and covenant not to sue. It is advisable to consult with legal counsel to fully understand the scope of the release and its potential impact on future claims against Sonesta Simply Suites. Franchisees should also be aware of the specific state laws that may limit the enforceability of such releases, such as those in California, Maryland, and Minnesota.