What is the Insurance 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) |
|---|---|---|---|
| Insurance | $500 per month, plus reimbursement for all premiums, costs, and expenses we incur | As billed | If you do not procure or maintain the required insurance or policy limits described in the Brand Manual, in addition to paying us a monthly fee, we may (but are not obligated to) procure and maintain insurance for you without first giving you notice, and you will be required to reimburse us. The monthly fee is subject to change. See Item 8 and 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, franchisees may be subject to an insurance fee. If a franchisee fails to procure or maintain the required insurance or policy limits as outlined in the Brand Manual, Sonesta Select Sonesta Essential has the option to procure and maintain insurance on behalf of the franchisee without prior notice.
In such instances, the franchisee is obligated to pay Sonesta Select Sonesta Essential a monthly fee of $500, in addition to reimbursing all premiums, costs, and expenses incurred by Sonesta Select Sonesta Essential for obtaining the insurance. This fee is due as billed.
It's important to note that the monthly fee of $500 is subject to change. Prospective franchisees should refer to Item 8 and Note 9 of the FDD for further details regarding insurance requirements and potential changes to the fee structure.