How will I be notified of an increase in the Brand Promotion Fee for my Sonesta Select Sonesta Essential hotel?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
However, we have the right, at any time and on notice to you, to increase the Brand Promotion Fee, provided that the Brand Promotion Fee shall not exceed 4.5% of your Hotel's Gross Rooms Revenue.
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, the Brand Promotion Fee is currently 3.5% of the hotel's Gross Rooms Revenue. Sonesta Select Sonesta Essential retains the right to increase this fee at any time.
However, Sonesta Select Sonesta Essential is obligated to provide notice to the franchisee before implementing any increase. The Brand Promotion Fee cannot exceed 4.5% of the hotel's Gross Rooms Revenue.
This means that as a franchisee, you will receive communication from Sonesta Select Sonesta Essential regarding any changes to the Brand Promotion Fee, ensuring you are informed of the updated financial obligations. It is important to note that while the franchisor can increase the fee, there is a defined upper limit to how much it can be raised.