When is the onboarding administration fee due for a Sonesta Select Sonesta Essential franchise?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
,000 (with 131 Guest Rooms).
Other Initial Fees
If you are entering into the Franchise Agreement for a newly constructed Brand Hotel, or if you are converting an existing hotel into a Brand Hotel, you will pay us an onboarding administration fee of $5,000 for Sonesta Select-branded hotels and $2,500 for Sonesta Essentialbranded hotels for the onboarding services we provide to you in connection with the opening of your Hotel. If you are acquiring an existing Brand Hotel, you will pay us a reduced onboarding administration fee of $2,500 for a Sonesta Select-branded hotel and $2,000 for a Sonesta Essential-branded hotel This fee is non-refundable and is due during or immediately after the onboarding process. During the 2024 fiscal year, we waived the onboarding administr
Source: Item 5 — INITIAL FEES (FDD pages 23–24)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, the onboarding administration fee is due during or immediately after the onboarding process. This fee applies if you are entering into a Franchise Agreement for a newly constructed Brand Hotel or converting an existing hotel into a Brand Hotel. The fee is $5,000 for Sonesta Select-branded hotels and $2,500 for Sonesta Essential-branded hotels. If you are acquiring an existing Brand Hotel, the onboarding administration fee is reduced to $2,500 for a Sonesta Select-branded hotel and $2,000 for a Sonesta Essential-branded hotel.
It is important to note that this fee is non-refundable, regardless of whether you are building a new hotel, converting an existing one, or acquiring an existing Sonesta Select Sonesta Essential location. The FDD also mentions that during the 2024 fiscal year, Sonesta Select Sonesta Essential waived the onboarding administration fee for certain Sonesta Essential-branded hotels, so it may be worth inquiring whether similar waivers are available.
Franchisees should budget for this expense and ensure timely payment to avoid any delays in the onboarding process. Understanding when fees are due is crucial for managing cash flow and meeting the franchisor's requirements. This fee covers the onboarding services that Sonesta Select Sonesta Essential provides in connection with the opening of your hotel.