How are payments applied under the Sonesta Select Sonesta Essential franchise agreement?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
Payments will be made when and by the same method by which your monthly fees due under the Franchise Agreement are paid.
This fee is subject, no more than once per year, to a Fee Adjustment.
You acknowledge and agree you are solely responsible for the costs and expenses of any additional setup or third-party fees associated with the implementation of the Services, including but not limited to configuration of your private branch exchange, and will pay such costs and expenses directly to the applicable vendors.
You agree that any breach or default by you under this Agreement, including your failure to pay the monthly fees, constitutes a material default under your Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, payments for additional services provided to Sonesta Select Sonesta Essential franchisees are to be made at the same time and using the same method as the monthly franchise fees. This means that franchisees can expect to handle these payments in a consistent manner alongside their regular financial obligations to the franchisor. The fees are subject to adjustment, but no more than once per year, providing some predictability for budgeting purposes.
However, franchisees are responsible for covering any additional setup costs or third-party fees linked to implementing these services. These costs could include configuring a private branch exchange (PBX) system, and franchisees must pay these expenses directly to the relevant vendors. This aspect highlights the importance of carefully assessing potential setup costs and vendor fees when considering these additional services.
Furthermore, the agreement stipulates that any failure to pay the monthly fees constitutes a material default under the Franchise Agreement. This underscores the critical nature of timely payments and the potential consequences of non-compliance. Franchisees should ensure they have a clear understanding of all payment obligations and maintain diligent financial management to avoid any breaches of the agreement.
Sonesta Select Sonesta Essential also requires the franchisee to maintain at least one additional phone line, other than the main property number, that can route directly to the front desk or the Hotel's interactive voice response. The franchisee must also provide a full and complete copy of the Hotel's phone bill immediately upon request.