How often can Sonesta Select Sonesta Essential implement a Fee Adjustment?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 9 – These fees are subject to, no more than once per year, the Fee Adjustment. "Fee Adjustment" means an increase at our discretion by up to the greater of (i) 5% annually (or 10% for TMC and Consortia Fees and Operations Insight Fees) on a compounding basis regardless of whether we 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 us).
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, the brand can implement a Fee Adjustment no more than once per year. The Fee Adjustment is defined as an increase at Sonesta Select Sonesta Essential's discretion.
The adjustment can be up to the greater of two calculations: either (i) 5% annually (or 10% for TMC and Consortia Fees and Operations Insight Fees) on a compounding basis, regardless of whether Sonesta Select Sonesta Essential exercises such adjustment in any calendar year, or (ii) the difference, expressed as a percentage, in the CPI (Consumer Price Index). The CPI is 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.
The CPI used is the National Consumer Price Index-All Urban Consumers-All Items (1982-1984 = 100) published by the U.S. Department of Labor. If the CPI is no longer published, Sonesta Select Sonesta Essential can designate another substitute reference reasonably.