When are the PIP and PIP reinspection fees due 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, if you are converting an existing hotel into a Sonesta Select or Sonesta Essential-branded hotel, you must pay a PIP Fee of up to $5,000 prior to the execution of the Franchise Agreement. This fee covers the cost for Sonesta Select Sonesta Essential to perform an initial inspection of your property, prepare a property improvement plan (PIP), and verify completion of the PIP. The PIP outlines the property improvements needed to meet brand standards.
If a reinspection of your hotel is required to ensure compliance with the PIP, you must pay a PIP reinspection fee of up to $5,000. Both the PIP Fee and the PIP reinspection fee are non-refundable.
These fees, up to $5,000 each, are due when billed. This means that Sonesta Select Sonesta Essential will send you an invoice for these fees, and payment is expected upon receipt. It is important for prospective franchisees to factor these potential costs and their payment schedule into their initial investment planning.