What is the brand promotion fee for a Sonesta Select Sonesta Essential franchise?

According to the 2025 FDD, Sonesta Select Sonesta Essential franchisees must pay a brand promotion fee. Currently, this fee is 3.5% of the hotel's Gross Revenue. This fee is paid in the same manner as the royalty fees.

Sonesta Select Sonesta Essential, its affiliates, or other designees may use the Brand Promotion Fees, along with other Network Hotels' contributions or promotional fees, to pay for various expenses and programs that benefit the Brand Hotels or any or all of the Network Hotels worldwide. These programs and expenditures may include preparing and producing video, audio, and written materials and digital media; developing, implementing, and maintaining the Franchise System Website and related strategies; administering international, national, regional and multi-regional marketing and advertising programs; administering online advertising and marketing campaigns; developing and administering software, apps, and related integrations; implementing and supporting the loyalty program or other marketing programs designed to encourage the patronage of Network Hotels; supporting public relations, market research, and other advertising, promotion, and marketing activities; participating in travel industry trade shows, operating a global sales department; and such other uses as they deem appropriate for the promotion of Network Hotels and further developing the reputation and image of Network Hotels.

Sonesta Select Sonesta Essential and its affiliates have sole discretion to determine how these fees are spent, including sole control over the creative concepts, materials, endorsements, and media used in the programs, the geographic market in which they place any media, and the allocation of advertising. Franchisees of each brand, and company or affiliate-owned or managed Network Hotels, may pay Brand Promotion Fees at a different rate. Sonesta Select Sonesta Essential and its affiliates also may at any time defer or reduce Brand Promotion Fees payable by a franchisee and, upon 30 days' prior notice, reduce or suspend Brand Promotion Fee payments and programs for which they use such payments for one or more periods of any length and terminate (and, if terminated, reinstate) such programs.

Sonesta Select Sonesta Essential need not ensure that brand promotion program expenditures in or affecting any geographic area are proportionate or equivalent to Brand Promotion Fees paid by Network Hotels operating in that geographic area or that any Network Hotel benefits directly or in proportion to its Brand Promotion Fees paid from the development of advertising and marketing materials or the placement of advertising and marketing. Sonesta Select Sonesta Essential and its affiliates may forgive, waive, settle, and compromise all claims by or against the brand promotion programs. Except as expressly provided, Sonesta Select Sonesta Essential assumes no direct or indirect liability or obligation to franchisees for collecting amounts due to, maintaining, directing, or administering such programs.