When must the Room Addition Fee be paid to Sonesta Select Sonesta Essential?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
r or not a legal action or other proceeding is initiated. You acknowledge that this Section 3.I is not our agreement to accept any payments after they are due or our commitment to extend credit to, or otherwise finance your operation of, your Hotel.
- J. Room Addition Fee. If you add or construct additional Guest Rooms at your Hotel at any time after you sign this Agreement, you will pay us a nonrefundable fee equal to the greater of $500 per additional Guest Room or $5,000 (the "Room Addition Fee"). You must pay the Room Addition Fee to us when you submit an application for our approval to add any Guest Rooms to your Hotel, and you must submit that applicatio
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, if a franchisee adds or constructs additional guest rooms at their hotel after signing the franchise agreement, they must pay a Room Addition Fee. This fee is nonrefundable and is equal to the greater of $500 per additional guest room or $5,000.
The Room Addition Fee must be paid when the franchisee submits an application for Sonesta Select Sonesta Essential's approval to add any guest rooms to the hotel. This application must be submitted before the franchisee enters into any agreement to add guest rooms.
As a condition of granting approval for the additional guest rooms, Sonesta Select Sonesta Essential may require the franchisee to modernize, rehabilitate, or upgrade the hotel, subject to Section 8.G of the franchise agreement. This means that adding rooms could trigger additional expenses beyond the Room Addition Fee itself.