What is the payment method for the Royalty Fee for a Sonesta Select Sonesta Essential hotel?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
ents.** Despite any designation you make, we may apply any of your payments to any of your past due indebtedness to us. We may set off any amounts you or your owners owe us or our affiliates against any amounts we or our affiliates owe you or your owners.
- L. Method of Payment. You hereby authorize us to debit your checking, savings, or other account automatically for the Royalty, Brand Promotion Fee, and other amounts due to us or our affiliates (the "EFT Authorization"). You agree to sign and deliver to us any documents we require for such EFT Authorization. Such EFT Authorization shall remain in full force and effect during the Term. We will debit the account you designate for these amounts on their due dates (or the subsequent business day if the due date is a national holiday or a weekend day). You agree to ensure that funds are available in your designated account to cover our withdrawals. If we permit you to pay by any other means, we may require payment of our then-current alternative payment fee. The parties acknowledge that due to technology developments and changes different payment methods may become available during the Term. We may from time to time require that you, in lieu of direct debit withdrawals, set up another form of payment for any fees and payments due under this Agreement. If so required, you will comply within a reasonable time.
If you fail to report the Gross Rooms Revenue, in addition to any other rights hereunder, we may debit your account for one hundred ten percent (110%) of the average of the last three (3) Royalty and Brand Promotion Fee payments that we debited (or during the Term, if you have operated your Hotel for less than three (3) months). If the amounts that we debit from your account are less than the amounts you actually owe us (once we have determined the true and correct Gross Rooms Revenue), we will debit your account for the balance on the day we specify. If the amounts that we debit from your account are greater than the amounts you actually owe us, we will credit the excess against the amounts we otherwise would debit from your account during the following month.
We may require you to pay any amounts due under this Agreement or otherwise by means other than automatic debit (e.g., by check or wire transfer) whenever we deem appropriate, and you agree to comply with our payment instructions. All amounts payable by you or your owners to us or our affiliates must be in United States Dollars or such other currency as we may designate.
- M.
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Sonesta Select Sonesta Essential franchisees authorize the company to debit their checking, savings, or other account automatically for Royalty Fees and other amounts due. This is referred to as the EFT Authorization. Franchisees must sign and deliver any documents required for this authorization, which remains in effect during the term of the agreement.
Sonesta Select Sonesta Essential will debit the designated account on the due dates, or the subsequent business day if the due date falls on a national holiday or weekend. Franchisees are responsible for ensuring sufficient funds are available to cover these withdrawals. If franchisees fail to report Gross Rooms Revenue, Sonesta Select Sonesta Essential may debit the account for 110% of the average of the last three Royalty and Brand Promotion Fee payments.
While automatic debit is the standard method, Sonesta Select Sonesta Essential retains the right to require payment by other means, such as check or wire transfer, and may impose an alternative payment fee if franchisees are permitted to pay by any other method. All amounts payable must be in United States Dollars or another designated currency. These payment terms ensure that Sonesta Select Sonesta Essential can efficiently collect fees and that franchisees understand their obligations for timely payments.