Under the Sonesta Simply Suites Incentive Note, what rights are waived by the franchisee?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
FOR THE FOLLOWING STATES: CALIFORNIA, HAWAII, ILLINOIS, INDIANA, MARYLAND, MICHIGAN, MINNESOTA, NEW YORK, NORTH DAKOTA, RHODE ISLAND, SOUTH DAKOTA, VIRGINIA, WASHINGTON, OR WISCONSIN.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 10 — FINANCING (FDD pages 47–48)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Sonesta Simply Suites franchisees in certain states do not waive rights or disclaim reliance on franchisor statements when signing any agreement related to the franchise relationship.
Specifically, for franchisees located in or opening a hotel in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin, any signed statement, questionnaire, or acknowledgment does not waive claims under state franchise law, including fraud, or disclaim reliance on franchisor statements. This provision overrides any conflicting terms in franchise documents.
This protection ensures that franchisees in these states retain their legal rights and recourse, preventing franchisors from using waivers to shield themselves from liability. Prospective franchisees should confirm whether their state is included in this list and understand the implications for their legal rights when entering into a franchise agreement with Sonesta Simply Suites.