What is the initial fee associated with opening a Sonesta Select Sonesta Essential franchise?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
ou will pay to us, as damages for failure to open on time and not as a penalty, our then-current Opening Date rescheduling fee (currently up to $5,000).
3. FEES.
A. Initial Fee. You must pay us at the time of your execution of this Agreement a nonrefundable initial fee in the amount of: (i) for a Sonesta Select -branded hotel, the greater of $65,000 or $500 per Guest Room (defined below), or (ii) for a Sonesta Essential -branded hotel, the greater of $45,000 or $500 per Guest Room (the "Initial Fee"). The Initial Fee must be paid to us by cashier's check, bank certified check, wire transfer, ACH, or credit card.
"Guest Room" means each rentable unit in your Hotel generally used for overnight guest accommodations, the entrance to which is controlled by the same key. Adjacent Guest Rooms with
connecting doors that can be rented as separate units are considered separate Guest Rooms. The initial number of approved Guest Rooms is identified on Exhibit A.
- B. Onboarding Administration Fee. You will pay us an onboarding administration fee of $5,000 for a Sonesta Select -branded hotel or $2,500 for a Sonesta Essential -branded hotel (or, if you are acquiring an existing Brand Hotel, a reduced fee of $2,500 for Sonesta Select -branded hotels and $2,000 for Sonesta Essent
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, the initial fee is nonrefundable and due upon execution of the Franchise Agreement. For a Sonesta Select-branded hotel, the initial fee is the greater of $65,000 or $500 per guest room. For a Sonesta Essential-branded hotel, the initial fee is the greater of $45,000 or $500 per guest room. The initial number of approved guest rooms is identified on Exhibit A of the Franchise Agreement. Payment must be made via cashier's check, bank certified check, wire transfer, ACH, or credit card.
This initial fee provides Sonesta Select Sonesta Essential with capital to fund its initial support and services for the new franchisee. The fee also compensates Sonesta Select Sonesta Essential for granting the franchisee the rights to operate under its brand and system. Because the fee is nonrefundable, a prospective franchisee should carefully evaluate the opportunity before signing the agreement.
In addition to the initial franchise fee, Sonesta Select Sonesta Essential also charges an onboarding administration fee. This fee is $5,000 for a Sonesta Select-branded hotel and $2,500 for a Sonesta Essential-branded hotel. If a franchisee is acquiring an existing branded hotel, the onboarding administration fee is reduced to $2,500 for Sonesta Select and $2,000 for Sonesta Essential. This fee covers the onboarding services Sonesta Select Sonesta Essential provides in connection with opening the hotel under the designated brand concept and is due during or immediately after the onboarding process.