What does 'other fee revenue' primarily consist of for Sonesta Select Sonesta Essential?

According to the 2025 Franchise Disclosure Document, Sonesta Select Sonesta Essential's 'other fee revenue' primarily includes charges for services provided to franchised properties related to revenue management and quality assurance inspections. It also includes liquidated damages that are paid if a franchise agreement is terminated early.

For a prospective franchisee, this means that a portion of the fees they pay to Sonesta Select Sonesta Essential will be for revenue management support, ensuring the property is optimized to generate income. Additionally, franchisees may be subject to quality assurance inspections, and the fees associated with these inspections contribute to this revenue stream.

Furthermore, the inclusion of liquidated damages in 'other fee revenue' highlights the financial implications of early termination of the franchise agreement. If a franchisee decides to terminate their agreement before the agreed-upon term, they may be required to pay liquidated damages, which then become part of Sonesta Select Sonesta Essential's revenue.