Is the PIP Fee refundable for a Sonesta Select Sonesta Essential franchise?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
tion fee for certain Sonesta Essential-branded hotels.
If you are converting an existing hotel into a Brand Hotel, prior to the execution of the Franchise Agreement, you must pay us up to $5,000 ("PIP Fee") to cover our costs to perform an initial inspection of your property, prepare a property improvement plan ("PIP"), and verify completion of the PIP. The PIP will set forth a list of property improvements that you must make to convert your property to a Brand Hotel under the Brand Standards. The PIP Fee is nonrefundable. If we are required to reinspect your Hotel to ensure you have complied with the PIP, you must pay us a PIP reinspection fee of up to $5,000. The
Source: Item 5 — INITIAL FEES (FDD pages 23–24)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, the PIP Fee is nonrefundable. If you are converting an existing hotel into a Sonesta Select Sonesta Essential-branded hotel, you must pay Sonesta Select Sonesta Essential up to $5,000 to cover the costs of the initial property inspection and the creation of a property improvement plan (PIP). This fee is required before the Franchise Agreement is executed.
If a reinspection of the hotel is required to ensure compliance with the PIP, Sonesta Select Sonesta Essential charges a PIP reinspection fee of up to $5,000. This fee is also non-refundable and is due when billed.
Prospective franchisees should be aware of these non-refundable fees as part of their initial investment when converting an existing hotel to a Sonesta Select Sonesta Essential franchise. Understanding these costs is crucial for accurate financial planning and assessing the overall feasibility of the franchise venture.