Is Sonesta Select Sonesta Essential required to administer and manage a loyalty program?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
During the operation of your Hotel, we will:
- Provide required and optional training programs either virtually or in-person. (Franchise Agreement, Section 4.A)
- Convene a Brand Conference (no less frequently than every 24 months) at which franchisees may network and participate in educational seminars. (Franchise Agreement, Section 4.B)
- Periodically advise you, at our election, regarding the operation of your Hotel. (Franchise Agreement, Section 4.C)
- Administer and manage a loyalty program, at our election. (Franchise Agreement, Section 4.D)
We and our affiliates may administer and manage loyalty programs that will provide participating guests of your Hotel with certain rewards or benefits when staying at your Hotel. Such loyalty programs may apply specifically for Brand Hotels or to any or all Network Hotels. Currently, Brand Hotels participate in our loyalty program referred to as "Sonesta Travel Pass." We charge Brand Hotel franchisees a loyalty program fee for your participation in the Sonesta Travel Pass program in the amount of 3% of your Hotel's Qualified Revenue (see Item 6 above) garnered through guests participating in the Sonesta Travel Pass Program; company-owned and company-managed Brand Hotels may pay the loyalty program fee at a different rate, and not all franchised Network Hotels pay a uniform loyalty program fee. We may increase your loyalty program fee up to 4.5% of your Hotel's Qualified Revenue. We and our affiliates may periodically
modify or discontinue the Sonesta Travel Pass program or any other loyalty program that we designate. You must participate in and honor the terms of any and all loyalty, discount, or other promotional program applicable to Brand Hotels and pay all applicable fees or charges associated with such programs (including any fees assessed by us and our affiliates, room discounts given to guests, or rewards provided to guests, that are applicable to your Hotel) that we and our affiliates offer to the public on your behalf and any room rate quoted to any guest at the time the guest makes an advance reservation. You must take all action necessary to participate in any loyalty program and you must grant us and our affiliates all necessary rights in and to any photographs, video and/or other marketing materials used in connection with any loyalty programs.
Source: Item 11 — **FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 52–64)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, franchisees are not required to administer and manage a loyalty program. The FDD states that Sonesta Select Sonesta Essential may administer and manage a loyalty program, at their election. However, franchisees must participate in and honor the terms of any loyalty programs applicable to Brand Hotels.
Sonesta Select Sonesta Essential and its affiliates may administer and manage loyalty programs, such as the "Sonesta Travel Pass," which provides rewards or benefits to participating guests. Franchisees are charged a loyalty program fee for participation in the Sonesta Travel Pass program, set at 3% of the hotel's Qualified Revenue garnered through guests participating in the program. This fee may increase up to 4.5% of the hotel's Qualified Revenue.
As a franchisee, you must take all necessary actions to participate in any loyalty program and grant Sonesta Select Sonesta Essential and its affiliates all necessary rights to any marketing materials used in connection with these programs. Sonesta Select Sonesta Essential also reserves the right to modify or discontinue any loyalty program. Franchisees are obligated to honor the terms of these programs and pay associated fees, including those assessed by Sonesta Select Sonesta Essential, room discounts, or rewards provided to guests.