What is the Failure to De-Identify Damages fee for Sonesta Select Sonesta Essential, per day?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
anchise Agreement in connection with such termination. |
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS (Note 1) |
|---|---|---|---|
| average monthly | |||
| Gross Rooms | |||
| Revenue shall be | |||
| based on the average | |||
| Gross Rooms | |||
| Revenue of your Hotel | |||
| for all full calendar | |||
| months during the | |||
| period commencing | |||
| on the Opening Date | |||
| and ending as of the | |||
| last full calendar | |||
| month immediately | |||
| preceding the last | |||
| date of regular | |||
| operations of your | |||
| Hotel. | |||
| Pre-Opening Damages | $3,600 per Guest Room | Upon demand | You must pay us these damages if we terminate the Franchise Agreement for your breach before the authorized opening of your Hotel. |
| Unauthorized Opening Damages | $5,000 per day that your Hotel is open without authorization and our costs, including attorneys' fees | Upon demand | If you open your Hotel before we authorize it to open as a Brand Hotel, you must pay us liquidated damages to compensate us for damage to our Marks. You also must reimburse us for our costs of enforcing our rights. |
| Failure to De Identify Damages | $500 per day, plus our expenses | Upon demand | If you fail to comply with all of your de identification obligations within 30 days after the expiration or termination of your Franchise Agreement, you must pay us this fee for each day in which you are in breach of your obligations. This is in addition to other damages and remedies to which we may be entitled under applicable law. |
| Revenue Management For Hire | $995 to $2,500 per month depending on your room count, market, and square feet of function space | Payable monthly by the 20th day of the following month | Note 10 provides a description of this service which is required unless your Hotel has a Revenue Manager who meets our criteria. See Note 9. |
| Revenue Management System | $6.44 per Guest Room per month | Payable monthly by the 20th day of the following month | Fees |
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 Failure to De-Identify Damages fee is $500 per day, in addition to expenses. This fee is levied if a franchisee fails to meet all obligations related to de-identifying the property within 30 days after the termination or expiration of the Franchise Agreement.
This means that if a Sonesta Select Sonesta Essential franchisee does not remove all branding, signage, and other identifying marks from the hotel within the specified timeframe after the franchise agreement ends, they will be charged $500 for each day the property remains non-compliant. This daily fee continues to accrue, potentially resulting in a significant financial burden on the former franchisee.
In addition to the daily fee, the franchisee is also responsible for covering Sonesta Select Sonesta Essential's expenses related to the failure to de-identify. These expenses could include legal fees, inspection costs, and other costs incurred by the franchisor to ensure compliance. This fee is in addition to other damages and remedies to which Sonesta Select Sonesta Essential may be entitled under applicable law.
Prospective franchisees should carefully review the de-identification requirements outlined in the Franchise Agreement and plan accordingly to avoid incurring these substantial daily fees and additional expenses upon termination or expiration of the agreement.