What is the range for the PIP Reinspection Fee 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 Reinspection Fee ranges from $0 to $5,000. This fee is only applicable if you are converting an existing hotel to a Sonesta Select Sonesta Essential branded hotel and fail the initial PIP inspection, necessitating a reinspection. The fee is paid as a lump sum and is payable to Sonesta Select Sonesta Essential as incurred.
This reinspection fee covers the cost for Sonesta Select Sonesta Essential to reinspect your hotel to ensure that all items specified in the PIP (Property Improvement Plan) have been completed to meet brand standards. The PIP itself outlines the required improvements needed to convert the property to a Sonesta Select Sonesta Essential franchise.
It's important to note that this fee is in addition to the initial PIP Fee of $5,000, which covers the cost of preparing or verifying completion of the initial PIP. Therefore, failing the initial inspection can lead to additional costs for the franchisee. A prospective franchisee should carefully review the PIP requirements and ensure they can meet them to avoid incurring this reinspection fee.