What are the requirements for a Sonesta Select Sonesta Essential franchisee regarding brand promotion?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
onsultation at our offices. If you request, and we agree to provide, additional or special guidance, assistance, or training, we may charge you our then applicable fee, including our personnel's per diem charges and travel and living expenses.
D. Loyalty Program. 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 and our affiliates may modify or discontinue any loyalty program at any time at our and their sole discretion. 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 agree that you will take all action necessary to participate in any loyalty program, and that you will grant us and our affiliates all necessary rights in and to any photographs, video and/or other marketing materials that we or they may require to reasonably undertake such programs on behalf of your Hotel.
We currently charge a loyalty program fee for your participation in the Sonesta Travel Pass program in the amount of 3% of your Hotel's Qualified Revenue (defined below) from guests participating in the Sonesta Travel Pass program, payable at the same time and in the same manner as Royalty Fees. We reserve the right, at any time, upon notice to you, to increase the loyalty program fee; provided, that the loyalty program fee that we impose shall not exceed 4.5% of your Hotel's Qualified Revenue. Companyowned 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. "Qualified Revenue" includes (a) Qualifying Rates (defined below), and (b) at our discretion, any other items charged to the loyalty program member not defined in subsection (a). "Qualifying Rates" include: (1) non-discounted rates; (2) standard corporate rates; (3) leisure rates; (4) government rates; (5) corporate and negotiated rates; (6) conference and meeting rates; and (7) individual hotel contract rates.
- E.
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to the 2025 FDD, Sonesta Select Sonesta Essential franchisees must participate in any loyalty, discount, or other promotional programs applicable to Brand Hotels. This includes paying all applicable fees or charges associated with such programs, such as fees assessed by Sonesta Select Sonesta Essential and its affiliates, room discounts given to guests, or rewards provided to guests. Franchisees must also honor room rates quoted to guests at the time they make advance reservations.
Sonesta Select Sonesta Essential, along with its affiliates, may administer and manage loyalty programs, such as the Sonesta Travel Pass, which provides participating guests with rewards or benefits when staying at the franchisee's hotel. These loyalty programs may apply specifically to Brand Hotels or to any or all Network Hotels. Sonesta Select Sonesta Essential and its affiliates retain the right to modify or discontinue any loyalty program at any time at their sole discretion.
As a Sonesta Select Sonesta Essential franchisee, you agree to take all necessary actions to participate in any loyalty program and grant Sonesta Select Sonesta Essential and its affiliates all necessary rights to any photographs, video, or other marketing materials that they may require to reasonably undertake such programs on behalf of your hotel. Franchisees may not register, own, maintain, or use any Online Presences relating to the Brand Hotels, Network Hotels, or that includes the Network Marks, except as approved in advance by Sonesta Select Sonesta Essential. As a general rule, Sonesta Select Sonesta Essential does not permit franchisees to maintain vanity or other independent Online Presences for Brand Hotels. Franchisees must establish any Online Presence that Sonesta Select Sonesta Essential may require, and only establish any other Online Presence that Sonesta Select Sonesta Essential authorizes. All use of Online Presences must be in accordance with the Brand Standards and Sonesta Select Sonesta Essential's other guidelines, including the implementation and maintenance of and compliance with privacy policies, as applicable.