How often is the call center fee subject to adjustment for Sonesta Select Sonesta Essential?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
e a dedicated telephone number for your Hotel to connect to the Services. Callers to this telephone number will be able to select a number for new reservation inquires. All new reservation inquiry calls will be directed to our Call Center. We will maintain ownership
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, the call center fee is subject to adjustment, but no more than once per year. The fee is currently set at $4.00 per call received by the Call Center. Payments for these calls are made in the same manner as the monthly fees due under the Franchise Agreement.
The "Fee Adjustment" is defined as an increase at Sonesta Select Sonesta Essential's discretion by up to the greater of (i) 5% annually (or 10% for TMC and Consortia Fees and Operations Insights Fees), on a compounding basis regardless of whether they exercise such adjustment in any calendar year, or (ii) the difference, expressed as a percentage, in CPI as determined by comparing the CPI in effect as of the Effective Date to the CPI in effect as of the date of the Fee Adjustment, without reference to any prior Fee Adjustment, if any. "CPI" means the National Consumer Price Index-All Urban Consumers-All Items (1982-1984 = 100) published by the U.S. Department of Labor (or if the CPI is no longer published, another substitute reference reasonably designated by Sonesta Select Sonesta Essential).
This means that as a franchisee, you can expect the call center fee to potentially increase annually, but the increase will be capped based on either a percentage or the change in the Consumer Price Index. It is important to note that Sonesta Select Sonesta Essential has the discretion to decide whether or not to implement this increase each year. Understanding the potential for these adjustments is crucial for budgeting and financial planning as a Sonesta Select Sonesta Essential franchisee.