What is the amount of the initial fee for a new construction Sonesta Select Sonesta Essential franchise?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 7: ESTIMATED INITIAL INVESTMENT SONESTA SELECT (Note 1) – 125 ROOMS]
| Type Of Expenditure | Amount Conversion | New Construction | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|---|
| Initial Fee (Note 2) | $65,000 | $65,000 | Lump sum | Upon your signing of the Franchise Agreement | Us |
| Onboarding | $5,000 | $5,000 | Lump sum | As arranged | Us |
| Administration Fee | |||||
| (Note 3) |
[Item 7: ESTIMATED INITIAL INVESTMENT SONESTA SELECT (Note 1) – 125 ROOMS]
| Type Of Expenditure | Amount Conversion | New Construction | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|---|
| Initial Fee (Note 2) | $45,000 | $45,000 | Lump sum | Upon your signing of the Franchise Agreement | Us |
| Onboarding | $2,500 | $2,500 | Lump sum | As arranged | Us |
| Administration Fee | |||||
| (Note 3) |
Note 2 – The Initial Fee of $65,000 for a Sonesta Select-branded hotel is based on the assumption that your Hotel has 125 Guest Rooms and therefore must pay the minimum Initial Fee. The Initial Fee of $45,000 for a Sonesta Essential-branded hotel is based on the assumption that your Hotel has 80 Guest Rooms and therefore must pay the minimum Initial Fee.
Note 1 – We have estimated costs based on a 125-room Sonesta Select-branded hotel. None of the fees payable to us are refundable. Amounts payable to third parties are nonrefundable unless the supplier agrees otherwise.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT SONESTA SELECT (Note 1) – 125 ROOMS (FDD pages 36–46)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, the initial fee for a new construction Sonesta Select hotel is $65,000, while for a Sonesta Essential hotel, it is $45,000. These fees are payable in a lump sum upon signing the Franchise Agreement and are paid directly to Sonesta Select Sonesta Essential.
The initial fee for the Sonesta Select brand is based on the assumption that the hotel has 125 guest rooms, which requires the minimum initial fee. For the Sonesta Essential brand, the initial fee is based on the assumption of 80 guest rooms, which also requires the minimum initial fee.
It is important to note that these initial fees are non-refundable. This is a common practice in franchising, as the initial fee compensates the franchisor for the costs associated with granting the franchise and providing initial support and training. Prospective franchisees should factor this non-refundable fee into their financial planning and due diligence.