How is the audit fee amount determined for a Sonesta Select Sonesta Essential franchise?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS (Note 1) |
|---|---|---|---|
| Audit | Cost of audit, including the charges of attorneys and independent accountants and the travel expenses, room and board, and compensation of our employees | As billed | This is payable only if we find that you have underreported Gross Rooms Revenue by 2% or more, or if the audit is caused by your failure to provide reports, records, or other information. |
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, the audit fee is determined by the cost of the audit itself. This includes charges from attorneys and independent accountants, as well as travel expenses, room and board, and compensation for Sonesta Select Sonesta Essential's employees involved in the audit.
This fee is only payable if Sonesta Select Sonesta Essential finds that a franchisee has underreported Gross Rooms Revenue by 2% or more. It is also charged if the audit is required because the franchisee failed to provide necessary reports, records, or other information.
For a prospective Sonesta Select Sonesta Essential franchisee, this means that maintaining accurate and transparent financial records is crucial. Underreporting revenue or failing to provide required documentation can lead to a potentially significant audit fee, covering not only accounting costs but also personnel and travel expenses incurred by Sonesta Select Sonesta Essential.