Is the onboarding administration fee for Sonesta Select Sonesta Essential refundable?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
e same key. Adjacent Guest Rooms with
connecting doors that can be rented as separate units are considered separate Guest Rooms. The initial number of approved Guest Rooms is identified on Exhibit A.
- B. Onboarding Administration Fee. You will pay us an onboarding administration fee of $5,000 for a Sonesta Select -branded hotel or $2,500 for a Sonesta Essential -branded hotel (or, if you are acquiring an existing Brand Hotel, a reduced fee of $2,500 for Sonesta Select -branded hotels and $2,000 for Sonesta Essent
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, the onboarding administration fee is non-refundable. For a Sonesta Select-branded hotel, the onboarding administration fee is $5,000, while for a Sonesta Essential-branded hotel, it is $2,500. If a franchisee is acquiring an existing Brand Hotel, the onboarding administration fee is a reduced fee of $2,500 for Sonesta Select-branded hotels and $2,000 for Sonesta Essential-branded hotels.
This fee covers the onboarding services that Sonesta Select Sonesta Essential provides in connection with the opening of the hotel under the Designated Brand Concept. The fee is due during or immediately after the onboarding process.
Because the onboarding administration fee is non-refundable, prospective franchisees should be certain of their decision to proceed with the franchise before paying this fee. It is common practice for franchisors to make certain fees non-refundable to cover their initial costs and efforts in setting up a new franchisee.