What is the dependency between curing a default and paying the Reactivation Fee for Sonesta Select Sonesta Essential?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS (Note 1) |
|---|---|---|---|
| Reactivation Fee | The lesser of 25% of past due balances or $2,000 | Prior to reactivation | If we have suspended your Hotel from the Reservation System because of a default under your Franchise Agreement, and you have cured the default, we may require you to pay this fee as a condition of reactivation. |
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 Reactivation Fee is contingent upon both the suspension of the hotel from the Reservation System due to a default under the Franchise Agreement and the subsequent cure of that default. If Sonesta Select Sonesta Essential has suspended a hotel from the Reservation System because of a default, the franchisee may be required to pay a Reactivation Fee.
The Reactivation Fee is the lesser of 25% of past due balances or $2,000. This fee must be paid prior to reactivation. This means that a franchisee must first correct the issue that led to the suspension (cure the default) and then pay the Reactivation Fee before the hotel can be reinstated into the Reservation System.
This conditionality implies that simply curing the default does not automatically reinstate the hotel's access to the Reservation System. Payment of the Reactivation Fee is a separate, additional requirement. Failing to pay this fee after curing the default will prevent the hotel from being reactivated. This fee acts as a deterrent against defaults and covers the administrative costs associated with the suspension and reactivation process.