Are there any third-party fees associated with a Sonesta Select Sonesta Essential franchise?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree you are solely responsible for the costs and expenses of any additional setup or third-party fees associated with the implementation of the Services, including but not limited to configuration of your private branch exchange, and will pay such costs and expenses directly to the applicable vendors.
G. Third-Party Distribution Program.
(1) We have entered into agreements with intermediaries for various distribution channels, pursuant to which such distribution channels and online travel agencies ("OTAs") (which may include Agoda | Priceline, Booking.com, Hotwire, Expedia, and other third party intermediaries providing travel products for sale electronically to travel agents, corporations, meeting planners, and consumers) will offer your hotel room inventory through their websites including, in some cases, rooms at loyalty program member rates (the "Third-Party Distribution Program"). You must participate in the Third-Party Distribution Program, under the terms and conditions we negotiate, including pricing terms, using only those channels that we designate for Brand Hotels. You must provide us with informat
(12) you and your owners agree that all the transferee's obligations under promissory notes, agreements, or security interests reserved in your Hotel are subordinate to the transferee's obligation to pay Royalty, Brand Promotion Fees, and other amounts due to us, our affiliates, and third-party vendors and otherwise to comply with this Agreement; and
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to the 2025 FDD, Sonesta Select Sonesta Essential franchisees may encounter third-party fees. Specifically, franchisees are responsible for the costs associated with setting up and implementing the Services, which includes configuring their private branch exchange. These costs are paid directly to the applicable vendors.
Additionally, Sonesta Select Sonesta Essential has agreements with intermediaries for various distribution channels, including online travel agencies (OTAs) like Agoda, Priceline, Booking.com, Hotwire, and Expedia. Franchisees must participate in the Third-Party Distribution Program under the terms and conditions negotiated by Sonesta Select Sonesta Essential, including pricing terms, using only the channels designated for Brand Hotels.
Furthermore, if a franchisee transfers their franchise to a new owner, the franchisee must ensure that the transferee's obligations to pay royalties, brand promotion fees, and other amounts due to Sonesta Select Sonesta Essential, its affiliates, and third-party vendors are prioritized. This indicates that third-party vendors are involved in the ongoing operation of the franchise, and payments to them are a condition of the franchise agreement. These third-party relationships are subject to the terms and conditions that Sonesta Select Sonesta Essential negotiates.