What financial statements must Sonesta Select Sonesta Essential submit monthly?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to establish and maintain at your own expense a bookkeeping, accounting, and recordkeeping system conforming to the requirements and formats we prescribe from time to time. We
may require you to use a Computer System to maintain certain sales data and other information. We may also require you to use a third party approved by us for accounting and bookkeeping services. You agree to give us in the manner and format that we prescribe from time to time:
- (a) On or before the 10th day of each month, (i) a report for the preceding month of all revenue generated at your Hotel, the Gross Rooms Revenue of your Hotel, room occupancy rates, reservation data and other information we require, and (ii) the profit and loss and cash flow statements and the balance sheet for the preceding month and year to date for the then current fiscal year;
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, franchisees are required to provide specific financial and operational reports to the company on a monthly basis. Specifically, by the 10th day of each month, franchisees must submit a report detailing the previous month's revenue, gross rooms revenue, room occupancy rates, reservation data, and any other information Sonesta Select Sonesta Essential requires.
In addition to the revenue and operational data, franchisees must also submit financial statements. These include the profit and loss statement, the cash flow statement, and the balance sheet for the preceding month. These financial statements must also include year-to-date figures for the current fiscal year, providing Sonesta Select Sonesta Essential with a continuous view of the hotel's financial performance.
This requirement ensures that Sonesta Select Sonesta Essential maintains a clear and consistent understanding of each franchise location's performance, allowing them to provide support and guidance as needed. It also enables the company to benchmark performance across the franchise system and identify trends or potential issues early on. For a prospective franchisee, this means implementing a robust accounting and reporting system to meet these monthly obligations.