When is the audit fee due 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 the 2025 Franchise Disclosure Document, the audit fee for a Sonesta Select Sonesta Essential franchise is due as billed. This fee covers the cost of the audit, including charges from attorneys and independent accountants, as well as travel expenses, room and board, and compensation for Sonesta Select Sonesta Essential's employees.
However, the audit fee is only payable under specific circumstances. A franchisee will only be billed if Sonesta Select Sonesta Essential finds that the franchisee has underreported Gross Rooms Revenue by 2% or more. Additionally, the fee is applicable if the audit is required because the franchisee failed to provide necessary reports, records, or other information to Sonesta Select Sonesta Essential.
This means that a Sonesta Select Sonesta Essential franchisee who accurately reports their Gross Rooms Revenue and provides all required documentation should not incur this audit fee. It is essential for franchisees to maintain accurate records and comply with reporting requirements to avoid potential audit fees.