To whom are the permits and licenses paid for a Sonesta Select Sonesta Essential hotel?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
SELECT (Note 1) – 125 ROOMS**
| Type Of Expenditure | Amount Conversion | New Construction | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|---|
| Initial Fee (Note 2) | $65,000 | $65,000 | Lump sum | Upon your signing of the Franchise Agreement | Us |
| Onboarding | $5,000 | $5,000 | Lump sum | As arranged | Us |
| Administration Fee | |||||
| (Note 3) | |||||
| YOUR ESTIMATED INITIAL INV |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT SONESTA SELECT (Note 1) – 125 ROOMS (FDD pages 36–46)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, the payments for permits and licenses are made to suppliers and governmental agencies. These costs, which range from $10,350 to $41,400 for conversions and $10,350 to $51,750 for new constructions, are paid as arranged.
The specific amount required for permits and licenses can vary significantly based on the hotel's location and the specific requirements of the state, county, or other political subdivision where the hotel is situated. For franchisees converting an existing hotel, the costs may differ depending on whether they need additional licenses or permits beyond those already held.
Prospective Sonesta Select Sonesta Essential franchisees should carefully investigate the specific permit and licensing requirements in their chosen location to accurately budget for these initial costs. Understanding these local regulations is essential for a smooth opening and ongoing operation of the hotel.