Can Sonesta Select Sonesta Essential increase the Brand Promotion Fee at any time?

According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, the Brand Promotion Fee can be increased at any time with notice to the franchisee. Currently, the Brand Promotion Fee is 3.5% of the Hotel's Gross Rooms Revenue. However, Sonesta Select Sonesta Essential has the right to increase this fee, provided it does not exceed 4.5% of the Hotel's Gross Rooms Revenue.

This means that a franchisee could see their Brand Promotion Fee increase by up to 1%, which would directly impact their operating expenses and profitability. It is important for prospective franchisees to factor in this potential increase when evaluating the financial feasibility of the franchise.

While Sonesta Select Sonesta Essential must provide notice before increasing the Brand Promotion Fee, the FDD does not specify how much advance notice they must give. This leaves some uncertainty for the franchisee, as a short notice period could make it difficult to adjust their budget accordingly. It would be prudent for a potential franchisee to discuss this with Sonesta Select Sonesta Essential to understand their typical notification practices for fee increases.

It is also worth noting that franchisees of each brand, as well as company or affiliate-owned or managed Network Hotels, may pay Brand Promotion Fees at a different rate. Sonesta Select Sonesta Essential may also defer or reduce these fees for certain franchisees, or even suspend the programs funded by these fees. This highlights that the Brand Promotion Fee structure is not necessarily uniform across all Sonesta Select Sonesta Essential properties.