What payment methods are acceptable for the Initial Fee for a Sonesta Select Sonesta Essential franchise?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
ou will pay to us, as damages for failure to open on time and not as a penalty, our then-current Opening Date rescheduling fee (currently up to $5,000).
3. FEES.
A. Initial Fee. You must pay us at the time of your execution of this Agreement a nonrefundable initial fee in the amount of: (i) for a Sonesta Select -branded hotel, the greater of $65,000 or $500 per Guest Room (defined below),
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to the 2025 FDD, Sonesta Select Sonesta Essential requires the initial franchise fee to be paid at the time the Franchise Agreement is executed. The initial fee is nonrefundable. For a Sonesta Select-branded hotel, the initial fee is the greater of $65,000 or $500 per guest room. For a Sonesta Essential-branded hotel, the initial fee is the greater of $45,000 or $500 per guest room.
Sonesta Select Sonesta Essential specifies acceptable payment methods for the initial franchise fee. Franchisees can pay the initial fee via cashier's check, bank certified check, wire transfer, ACH (Automated Clearing House), or credit card.
The availability of multiple payment options provides flexibility for new Sonesta Select Sonesta Essential franchisees. Using a credit card might allow franchisees to earn rewards points or delay payment, while electronic methods like wire transfer or ACH can streamline the transaction. However, franchisees should consider any potential fees associated with these payment methods.