For Sonesta Simply Suites, what years are the company subject to audit for income taxes?

According to the 2025 Franchise Disclosure Document, Sonesta Simply Suites' parent company, Red Lion Hotels Corporation, is subject to audit for income tax purposes for the years ending December 31, 2024, December 31, 2023, and December 31, 2022. This means that the company's tax filings for these years may be examined by tax authorities to ensure compliance with tax laws and regulations.

For a potential Sonesta Simply Suites franchisee, this information indicates the financial statements provided in the FDD have undergone scrutiny by both an independent auditor (Deloitte & Touche LLP) and potentially by tax authorities. The independent auditor's report expresses an opinion on the fairness of the presentation of the company's financial position, results of operations, and cash flows for the specified years. The tax audit adds another layer of verification, specifically focused on income tax compliance.

It is important to note that being subject to an audit does not necessarily imply any wrongdoing or errors in the company's tax filings. Audits are a normal part of financial oversight and are conducted to ensure accuracy and compliance. However, if an audit reveals any discrepancies or issues, it could potentially lead to adjustments in the company's financial statements or tax liabilities. A prospective franchisee may want to inquire about the outcomes of these audits to gain further insight into the company's financial health and tax compliance history.