What is the Non Compliance Fee for a Sonesta Select Sonesta Essential franchise, 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) |
|---|---|---|---|
| Non Compliance Fee | 1% of Gross Rooms Revenue per month of non-compliance | Upon demand | If we deliver you notice of your breach under the Franchise Agreement, you may be assessed a non-compliance fee until such default has been remediated or cured. |
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 Non-Compliance Fee may be assessed if the franchisee breaches the Franchise Agreement. This fee is 1% of Gross Rooms Revenue per month of non-compliance.
The Non-Compliance Fee is due upon demand from Sonesta Select Sonesta Essential. This means that the franchisee will be required to pay the fee once Sonesta Select Sonesta Essential requests it.
This fee serves as a financial disincentive for franchisees to violate the terms of the Franchise Agreement and encourages them to promptly correct any breaches to avoid incurring additional costs. It is important for prospective franchisees to carefully review the Franchise Agreement to understand what constitutes a breach and how to avoid non-compliance, as these fees can significantly impact their revenue.