What additional costs are associated with the re-inspection fee for a Sonesta Select Sonesta Essential franchise?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
Quality Assurance Annual Inspection | Up to $2,500 once per year, plus appropriate and customary travel, lodging, and meals. If your Hotel fails the quality inspection, a re-inspection will be required at an additional fee of up to $4,000 plus appropriate and customary travel, lodging, and meals. | As incurred | Inspection and travel fees shall be paid to SRLHF, its affiliate or a third party, as applicable, for the inspection process. See Notes 8 and 9.
If we require additional inspections of your Hotel, we may charge up to $4,000 for the first re-inspection, and up to $5,000 for any subsequent re-inspection. You must pay the costs of all inspections, including the reimbursement of our personnel's travel and meal expenses.
Note 9 – These fees are subject to, no more than once per year, the Fee Adjustment. "Fee Adjustment" means an increase at our discretion by up to the greater of (i) 5% annually (or 10% for TMC and Consortia Fees and Operations Insight Fees) on a compounding basis regardless of whether we exercise such adjustment in any calendar year, or (ii) the difference, expressed as a percentage, in CPI as determined by comparing the CPI in effect as of the Effective Date to the CPI in effect as of the date of the Fee Adjustment, without reference to any prior Fee Adjustment, if any. "CPI" means the National Consumer Price Index-All Urban Consumers-All Items (1982- 1984 = 100) published by the U.S. Department of Labor (or if the CPI is no longer published, another substitute reference reasonably designated by us).
Source: Item 6 — OTHER FEES (FDD pages 24–36)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, if a hotel fails its initial quality assurance inspection, a re-inspection will be required. The re-inspection fee can be up to $4,000. In addition to this fee, the franchisee must also pay for appropriate and customary travel, lodging, and meals for the inspector.
If Sonesta Select Sonesta Essential requires additional inspections of a hotel, the franchisee may be charged up to $4,000 for the first re-inspection and up to $5,000 for any subsequent re-inspection. The franchisee is responsible for covering the costs of all inspections, which includes reimbursing Sonesta Select Sonesta Essential personnel's travel and meal expenses.
It's important to note that these fees are subject to the Fee Adjustment, which means Sonesta Select Sonesta Essential can increase the fees by up to the greater of 5% annually (or 10% for TMC and Consortia Fees and Operations Insight Fees) on a compounding basis or the difference in CPI. The frequency and methodology of inspections may change from year to year.