What is the Late Payment Charge 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) |
|---|---|---|---|
| Late Payment Charge | Lesser of 1.5% per month or the maximum rate permitted by applicable law | Upon demand | You may be assessed a late payment charge if you do not make any payment when due. Our acceptance of your payment of any deficiency will not waive our right to terminate the Franchise Agreement under its terms. |
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, a franchisee may be assessed a late payment charge if they do not make payments when due. The late payment charge is the lesser of 1.5% per month or the maximum rate permitted by applicable law. This charge is due upon demand.
This means that if a franchisee fails to make a payment on time, Sonesta Select Sonesta Essential has the right to charge them interest on the overdue amount. The specific amount will depend on the outstanding balance and the prevailing legal limits on interest rates in the relevant jurisdiction. Franchisees should be aware of their payment obligations and ensure timely payments to avoid incurring these charges.
It is important to note that Sonesta Select Sonesta Essential's acceptance of a late payment does not waive their right to terminate the Franchise Agreement due to the payment deficiency. This highlights the importance of adhering to the payment terms outlined in the agreement to maintain a good standing with the franchisor and avoid potential termination.