What is the Reactivation Fee for Sonesta Select Sonesta Essential, and when is it due?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS (Note 1) |
|---|---|---|---|
| Reactivation Fee | The lesser of 25% of past due balances or $2,000 | Prior to reactivation | If we have suspended your Hotel from the Reservation System because of a default under your Franchise Agreement, and you have cured the default, we may require you to pay this fee as a condition of reactivation. |
Source: Item 6 — OTHER FEES (FDD pages 24–36)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, a reactivation fee may be required if the hotel is suspended from the Reservation System due to a default under the Franchise Agreement. If the franchisee cures the default, Sonesta Select Sonesta Essential may require payment of a reactivation fee.
The reactivation fee is the lesser of 25% of the past due balances or $2,000. This fee is due prior to reactivation of the hotel's reservation system.
This means that if a Sonesta Select Sonesta Essential franchisee falls behind on payments or violates the Franchise Agreement, leading to suspension from the reservation system, they will need to pay this fee before being reinstated. The fee is capped at $2,000, so even with significant past due balances, the franchisee will not pay more than that amount to reactivate the reservation system. Franchisees should be aware of the conditions that could lead to suspension and the associated reactivation costs.