When is the Royalty fee due for a Sonesta Select Sonesta Essential franchise?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS (Note 1) |
|---|---|---|---|
| Royalty | 5% of Gross Rooms Revenue | Payable monthly by the 20th day of the following month | See Note 2. |
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, the royalty fee, which is 5% of Gross Rooms Revenue, is payable monthly. Specifically, it is due by the 20th day of the following month.
This means that if a Sonesta Select Sonesta Essential franchisee has gross room revenue in January, the 5% royalty payment for that revenue is due by February 20th. This consistent monthly payment schedule is a standard practice in the franchise industry, allowing Sonesta Select Sonesta Essential to collect royalties regularly and franchisees to manage their cash flow accordingly.
It is important for prospective franchisees to factor this monthly royalty payment into their financial planning. Failing to make timely payments can result in late payment charges or other penalties as outlined in the Franchise Agreement. Franchisees should also be aware that Sonesta Select Sonesta Essential is authorized to debit the franchisee's account automatically for royalty fees.