What is the monthly fee component of the Insurance fee for a Sonesta Select Sonesta Essential franchise?
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 must pay a monthly insurance fee. This fee is $500 per month, in addition to reimbursing Sonesta Select Sonesta Essential for all premiums, costs, and expenses they incur.
This fee is due as billed. If a franchisee fails to procure or maintain the required insurance or policy limits as described in the Brand Manual, Sonesta Select Sonesta Essential has the option, but not the obligation, to procure and maintain insurance on behalf of the franchisee without prior notice. In such cases, the franchisee is required to reimburse Sonesta Select Sonesta Essential for all associated costs, in addition to the standard monthly fee.
It's important to note that the monthly fee of $500 is subject to change, as indicated in Item 8 and Note 9 of the FDD. Prospective franchisees should carefully review Item 8 and Note 9 to understand the potential for adjustments to this fee and the factors that may influence such changes. Understanding the full scope of insurance requirements and potential costs is crucial for budgeting and financial planning.