What is the Indemnification fee for Sonesta Select Sonesta Essential, and when is it due?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS (Note 1) |
|---|---|---|---|
| Indemnification | Varies | Case by case basis as incurred | You must reimburse us if we are held liable for claims arising from the development or operation of your Hotel, the business you conduct under the Franchise Agreement, any default under your Franchise Agreement, and/or your employment practices or that are instituted by your employees, including attorneys' fees and court costs we reasonably incur to protect us, our parent, subsidiaries, or affiliates. |
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 Indemnification fee varies in amount. This fee is due on a case-by-case basis as incurred.
Sonesta Select Sonesta Essential requires franchisees to reimburse them if they are held liable for claims arising from the development or operation of the franchisee's hotel. This includes the business conducted under the Franchise Agreement, any default under the Franchise Agreement, and/or the franchisee's employment practices or those instituted by their employees.
The reimbursement covers attorneys' fees and court costs that Sonesta Select Sonesta Essential reasonably incurs to protect themselves, their parent company, subsidiaries, or affiliates. This means a franchisee could face unpredictable and potentially substantial costs depending on the nature and severity of any claims or legal actions brought against Sonesta Select Sonesta Essential related to the franchisee's hotel operations.