What booking fees and commissions are applicable to a Sonesta Select Sonesta Essential franchise?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
A summary of the currently applicable booking fees, commissions, and other fees is set forth in Schedule 3.H.
Such fees are subject to change.
We currently charge a loyalty program fee for your participation in the Sonesta Travel Pass program in the amount of 3% of your Hotel's Qualified Revenue (defined below) from guests participating in the Sonesta Travel Pass program, payable at the same time and in the same manner as Royalty Fees. We reserve the right, at any time, upon notice to you, to increase the loyalty program fee; provided, that the loyalty program fee that we impose shall not exceed 4.5% of your Hotel's Qualified Revenue.
We will charge you a fee of $4.00 for each call received by the Call Center.
This fee is subject, no more than once per year, to a Fee Adjustment.
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to the 2025 FDD, the specific booking fees and commissions for a Sonesta Select Sonesta Essential franchise are detailed in Schedule 3.H, which is not included in the provided excerpts. Item 22 of the franchise agreement mentions that a summary of the currently applicable booking fees, commissions, and other fees is set forth in Schedule 3.H and that such fees are subject to change.
In addition to the fees detailed in Schedule 3.H, Sonesta Select Sonesta Essential franchisees must pay a loyalty program fee for participation in the Sonesta Travel Pass program. This fee is currently 3% of the hotel's Qualified Revenue from guests participating in the program, payable at the same time and in the same manner as Royalty Fees. However, Sonesta Select Sonesta Essential retains the right to increase this fee, provided that it does not exceed 4.5% of the hotel's Qualified Revenue, with a notice to the franchisee.
Furthermore, franchisees will incur a fee of $4.00 for each call received by the Call Center, which handles reservation-related calls on behalf of the hotel. This fee is subject to a Fee Adjustment, which can occur no more than once per year. The Fee Adjustment can increase by up to the greater of (i) 5% annually (or 10% for TMC and Consortia Fees and Operations Insights Fees), on a compounding basis, or (ii) the difference 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.
Prospective franchisees should request a copy of Schedule 3.H from Sonesta Select Sonesta Essential to fully understand all applicable booking fees and commissions. They should also inquire about any potential Fee Adjustments or modifications to the loyalty program fee to accurately assess the financial obligations associated with the franchise.