What is the method of payment for signage for a Sonesta Select Sonesta Essential hotel?
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 |
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 method of payment for signage is "as arranged." The payment is due "as arranged, before opening" and is to be paid to "Suppliers." The estimated cost for signage for a conversion is $20,000 to $75,000, while for new construction, it is $25,000 to $125,000.
This means that the payment schedule for signage will be determined between the franchisee and the suppliers. This could involve a deposit, progress payments, or payment upon completion. Since the payment is due before opening, franchisees need to ensure that the signage is completed and paid for before the hotel's launch.
The estimate includes the cost of painting cabinets and poles but does not include any electrical/wiring; permits; or freight/shipping. The actual cost will depend on factors such as the sign size, material, height, ease of access, and equipment needed for the location, and may exceed the estimates indicated. Franchisees should get detailed quotes from multiple suppliers to understand the full scope of costs involved and negotiate payment terms that work for their budget and cash flow.