factual

When is the Brand Promotion Fee due for a Sonesta Select Sonesta Essential franchise?

Sonesta_Select_Sonesta_Essential Franchise · 2025 FDD

Answer from 2025 FDD Document

TYPE OF FEE AMOUNT DUE DATE REMARKS (Note 1)
Brand Promotion Fee 3.5% of Gross Rooms Revenue Payable monthly by the 20 th day of the following month See Note 2. We may increase the Brand Promotion Fee up to 4.5%, upon notice to you.

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 Brand Promotion Fee is due monthly. Specifically, it is payable by the 20th day of the following month.

The Brand Promotion Fee is calculated as 3.5% of Gross Rooms Revenue. However, Sonesta Select Sonesta Essential retains the right to increase this fee up to 4.5% with notice to the franchisee.

It's important for prospective franchisees to note that the obligation to pay the Brand Promotion Fee begins on the earlier of the hotel's Opening Date or the date the franchisee begins operating the hotel under the Sonesta Select Sonesta Essential marks. The 'Opening Date' is defined in Exhibit A of the Franchise Agreement, or the closing date if acquiring an existing branded hotel.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.