What are the consequences of paying a deficiency late 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) |
|---|---|---|---|
| Late Payment Charge | Lesser of 1.5% per month or the maximum rate permitted by applicable law | Upon demand | You may be assessed a late payment charge if you do not make any payment when due. Our acceptance of your payment of any deficiency will not waive our right to terminate the Franchise Agreement under its terms. |
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, if a franchisee fails to make payments on time, they may be assessed a late payment charge. This charge is the lesser of 1.5% per month or the maximum rate permitted by applicable law.
It's important to note that Sonesta Select Sonesta Essential's acceptance of a late payment does not waive their right to terminate the Franchise Agreement if other terms have been violated. This means that even if the franchisee pays the deficiency and associated late fee, Sonesta Select Sonesta Essential still retains the right to terminate the agreement under its terms.
This policy is fairly standard in franchising, as franchisors need to ensure timely payments to maintain their own financial stability and brand standards. Franchisees should be aware of these potential late payment consequences and ensure they have systems in place to meet all payment deadlines to Sonesta Select Sonesta Essential.