Who is responsible for paying the transfer fee to Sonesta Select Sonesta Essential?

According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, the responsibility for paying the transfer fee is assigned to the 'Assignor'. Specifically, the document states that the Assignor is responsible for paying or ensuring the payment of the transfer fee to Sonesta Select Sonesta Essential. The exact amount of the transfer fee is not specified in the excerpt but is indicated by a blank space in the document. The transfer fee is required under the Existing Franchise Agreement, is fully earned by Sonesta Select Sonesta Essential upon payment, and is non-refundable.

In practical terms, this means that if a franchisee of Sonesta Select Sonesta Essential decides to transfer their franchise to a new owner (the Assignee), the original franchisee (the Assignor) is obligated to pay the transfer fee. This fee compensates Sonesta Select Sonesta Essential for the administrative and legal costs associated with processing the transfer and updating the franchise agreement. The non-refundable nature of the fee implies that even if the transfer does not ultimately go through, the Assignor will not receive a refund of the transfer fee.

Prospective franchisees should take note of this provision, as it represents a potentially significant cost when exiting the franchise system through a transfer. It is important to clarify the exact amount of the transfer fee with Sonesta Select Sonesta Essential during the due diligence process to fully understand the financial implications of transferring the franchise. Additionally, franchisees should be aware of any other amounts due to Sonesta Select Sonesta Essential through the closing date, which the Assignor is also responsible for paying.