Is the onboarding administration fee refundable 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 non-refundable. For a newly constructed or converted Sonesta Select-branded hotel, the onboarding administration fee is $5,000, while it is $2,500 for a Sonesta Essential-branded hotel. If acquiring an existing Brand Hotel, the onboarding administration fee is $2,500 for a Sonesta Select-branded hotel and $2,000 for a Sonesta Essential-branded hotel. This fee is due during or immediately after the onboarding process.
This means that once a prospective franchisee pays the onboarding administration fee to Sonesta Select Sonesta Essential, they cannot get it back, regardless of whether they complete the onboarding process or open their hotel. This is a standard practice in franchising, as the fee covers the franchisor's costs associated with providing onboarding services.
Prospective franchisees should factor this non-refundable fee into their initial investment calculations and be certain of their commitment to opening a Sonesta Select Sonesta Essential franchise before paying it. It is important to carefully consider the terms and conditions outlined in the Franchise Agreement before signing.