When is the PIP fee due for a Sonesta Select Sonesta Essential franchise?
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 |
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 PIP fee for a conversion is due before you sign the Franchise Agreement. The PIP fee is a lump sum of $5,000.
The PIP, or Property Improvement Plan, outlines the required upgrades and modifications needed to convert an existing hotel into a Sonesta Select Sonesta Essential branded hotel. The PIP fee covers the cost for Sonesta Select Sonesta Essential to prepare or verify the completion of the PIP.
If a Sonesta Select Sonesta Essential franchisee fails the initial PIP inspection, a reinspection may be required, incurring a PIP reinspection fee. This reinspection fee ranges from $0 to $5,000 and is due as incurred.