What does the audit fee for a Sonesta Select Sonesta Essential franchise cover?
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 covers the cost of the audit itself, including charges from attorneys and independent accountants. It also includes travel expenses, room and board, and compensation for Sonesta Select Sonesta Essential 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 payable if the audit is required because the franchisee failed to provide necessary reports, records, or other information. This means that franchisees who accurately report their revenue and maintain proper records should not typically incur this fee.
For a prospective Sonesta Select Sonesta Essential franchisee, this highlights the importance of accurate financial reporting and diligent record-keeping. Underreporting revenue, even unintentionally, can lead to a costly audit. Maintaining organized and transparent records is crucial to avoid triggering an audit due to lack of information. Franchisees should ensure they understand Sonesta Select Sonesta Essential's reporting requirements and have systems in place to comply.