What is the late payment charge assessed by Sonesta Select Sonesta Essential for unpaid amounts?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
I. Interest on Late Payments. If any amount due from you hereunder is not paid when due, such non-payment will constitute a material breach of this Agreement.
In addition, we may assess a late payment charge of 1.5% per month or the maximum amount permitted by applicable law, whichever is less, on the unpaid amount beginning on the first day following the due date.
Should we engage legal counsel or other professionals in connection with any failure by you to pay when due any monies owed under this Agreement or submit when due any reports, information or supporting records, or in connection with any failure otherwise to comply with this Agreement, you will reimburse us on demand for all the above-listed costs and expenses we incur, whether or not a legal action or other proceeding is initiated.
You acknowledge that this Section 3.I is not our agreement to accept any payments after they are due or our commitment to extend credit to, or otherwise finance your operation of, your Hotel.
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, if a franchisee fails to pay any amount due, it will be considered a material breach of the agreement. In addition to this, Sonesta Select Sonesta Essential may assess a late payment charge. This charge will accrue beginning on the first day following the due date.
The late payment charge will be 1.5% per month on the unpaid amount. However, if applicable law stipulates a maximum amount for late payment charges that is less than 1.5% per month, then Sonesta Select Sonesta Essential will only charge the maximum amount legally permitted.
Furthermore, if Sonesta Select Sonesta Essential has to engage legal counsel or other professionals because the franchisee failed to pay monies owed or submit required reports, information, or supporting records, the franchisee will be responsible for reimbursing Sonesta Select Sonesta Essential for all associated costs and expenses, regardless of whether a legal action or other proceeding is initiated.