To whom is the initial fee paid for a Sonesta Select Sonesta Essential franchise?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
SELECT (Note 1) – 125 ROOMS**
| Type Of Expenditure | Amount Conversion | New Construction | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|---|
| Initial Fee (Note 2) | $65,000 | $65,000 | Lump sum | Upon your signing of the Franchise Agreement | Us |
| Onboarding | $5,000 | $5,000 | Lump sum | As arranged | Us |
| Administration Fee | |||||
| (Note 3) | |||||
| YOUR ESTIMATED INITIAL INVESTMENT | |||||
| Type Of Expenditure | Amount Conversion | New Construction | Method of Payment | When Due | To Whom Payment Is To Be Made |
| Revenue Management System Installation (Note 4) | $1,500 to $10,000 | $1,500 to $10,000 | As arranged | Before opening your Hotel | Us |
| CRS to PMS Interface and Tokenization Set Up Fee (Note 5) | $650 to $1,745 | $650 to $1,745 | Lump sum | Upon your signing of the Franchise Agreement | Us |
| IT Implementation Services Fee (Note 6) | $0 to $20,000 | $0 to $20,000 | As arranged | Before opening your Hotel | Us |
| Property Management System Installation Fee (Note 7) | $20,000 to $35,000 | $20,000 to $35,000 | As arranged | Before opening your Hotel | Suppliers |
| Ancillary System Hardware, Network, Administration (Note 8) | $5,000 to $25,000 | $15,000 to $25,000 | As arranged | Before opening your Hotel | Suppliers |
| Sales Technology Platform Implementation Costs (Note 9) | $2,265 | $2,265 | As arranged | Before opening your Hotel | Us |
| PIP Fee (Note 10) | $5,000 | N/A | Lump sum | Before you sign the Franchise Agreement | Us |
| PIP Reinspection | $0 to $5,000 | N/A | Lump sum | As incurred | Us |
| Fee (Note 11) | |||||
| Custom Architecture & Design Review | $5,000 to $15,000 | $15,000 to $25,000 | As arranged | As arranged | Us |
| Initial Brand Training Fee and Reimbursement of Expenses (Note 12) | $1,500 to $4,000 | $1,500 to $4,000 | Lump sum | Upon your signing of the Franchise Agreement | Us |
| Initial Training Expenses (Note 13) | $1,000 to $2,000 | $1,000 to $2,000 | As arranged | As arranged | Suppliers and employees |
| Real Estate, Legal, | Variable | Variabl |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT SONESTA SELECT (Note 1) – 125 ROOMS (FDD pages 36–46)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, the initial franchise fee is paid to "Us", meaning the franchisor. For a Sonesta Select-branded hotel, the initial fee is $65,000, while for a Sonesta Essential-branded hotel, it is $45,000. This fee is due upon signing the Franchise Agreement and is typically non-refundable.
In addition to the initial franchise fee, franchisees will also make several other payments to Sonesta Select Sonesta Essential. These include fees for onboarding ($2,500 to $5,000), Revenue Management System Installation ($1,500 to $10,000), CRS to PMS Interface and Tokenization Set Up ($650 to $1,745), IT Implementation Services ($0 to $20,000), Sales Technology Platform Implementation ($2,265), PIP Fee ($5,000), PIP Reinspection Fee ($0 to $5,000), Custom Architecture & Design Review ($5,000 to $15,000), Initial Brand Training Fee and Reimbursement of Expenses ($1,500 to $4,000), Lender Comfort Letter Fee ($2,000), Photography Expenses ($5,000), and Construction Start Date Extension Fee ($0 to $5,000). These fees are generally non-refundable.
Understanding to whom payments are made is crucial for budgeting and managing the initial investment. Prospective franchisees should carefully review Item 7 of the FDD and clarify with Sonesta Select Sonesta Essential the specific amounts and payment schedules for all fees to ensure they have a clear understanding of their financial obligations. Note that some fees are paid to suppliers, while others are paid to Sonesta Select Sonesta Essential.