When is the Groups, Meetings, and Events fee due 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) |
|---|---|---|---|
| Groups, Meetings, and, Events | 5% on consumed master folio per group | Payable monthly by the 20 th day of the following month | This is a Sales Administrative fee charged by us to help defray some of the costs incurred by us in generating certain business for you. If you fail to report the number of room nights actually consumed by a group within 15 days of the group's departure, this fee will be charged based on the contracted for room nights. See Note 9. |
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 Groups, Meetings, and Events fee is due monthly by the 20th day of the following month. This fee is calculated as 5% on consumed master folio per group.
The FDD clarifies that this fee is a Sales Administrative fee charged by Sonesta Select Sonesta Essential to help cover the costs they incur in generating certain business for the franchisee. This means that Sonesta Select Sonesta Essential is actively involved in securing group bookings for the hotel, and the fee helps offset their sales and marketing efforts.
It's important to note that if a franchisee fails to report the number of room nights actually consumed by a group within 15 days of the group's departure, the Groups, Meetings, and Events fee will be charged based on the contracted-for room nights. This highlights the importance of accurate and timely reporting to avoid potentially overpaying this fee. As a prospective franchisee, understanding the process for reporting group room nights and ensuring compliance with the 15-day deadline is crucial for managing costs effectively.