What are Third-Party Fees for a Sonesta Select Sonesta Essential hotel?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
F. Third-Party Fees. We periodically may require you to pay us fees due from you to third parties, which we will collect on behalf of such third parties and remit to such third parties.
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 information we may request to facilitate your participation with the Third-Party Distribution Program or the Franchise System Website (as defined in Section 9.B). You are responsible for the payment of all reservation fees, including third-party booking fees, global distribution system ("GDS") fees, and fees associated with the central reservation office (call center) and Central Reservation System, in connection with stays booked at your Hotel through their websites. If at any time hotel guests pay for stays booked at your Hotel through those websites directly, we have the right (but not the obligation) to collect revenues paid to the OTAs on your behalf, and if collected remit the revenue to you less any amounts owed to us.
(2) You must connect to all third-parties distribution channels through our Central Reservation System, unless such third-party does not directly or indirectly offer interfaces to the Central Reservation System. You otherwise may not bypass our Central Reservation System by connecting such third-party distribution channel to your Property Management System or otherwise. You must maintain rates and inventory in the Central Reservation System on a rolling 12-month basis. If you fail to maintain rates and inventory on a rolling 12-month basis, you will be given seven (7) days' written notice to do so, after which, we will extend your rates on your behalf. Upon our first written notice to you for failing to maintain rates and inventory on a rolling 12-month basis, you must pay us a fee of $250, subject to Fee Adjustments. For repeated occurrences requiring additional notice to you, we may charge you additional fees.
We will charge you a fee of $4.00 for each call received by the Call Center.
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.
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, franchisees may be required to pay fees due to third parties, which Sonesta Select Sonesta Essential will collect and remit to those third parties.
Sonesta Select Sonesta Essential also utilizes a Third-Party Distribution Program, where the franchisee must participate under the terms and conditions negotiated by Sonesta Select Sonesta Essential. This program involves intermediaries for various distribution channels, including online travel agencies (OTAs) such as Agoda, Priceline, and Expedia. Franchisees are responsible for paying all reservation fees, including third-party booking fees and global distribution system (GDS) fees, for stays booked through these websites. Franchisees must connect to all third-party distribution channels through Sonesta Select Sonesta Essential's Central Reservation System and maintain rates and inventory on a rolling 12-month basis. Failure to do so may result in a $250 fee, subject to Fee Adjustments, and additional fees for repeated occurrences.
Additionally, if a franchisee utilizes Sonesta Select Sonesta Essential's voice reservation and auto attendant services through a third-party vendor, they will be charged $4.00 for each call received by the Call Center. This fee is also subject to Fee Adjustments, and franchisees are responsible for any additional setup or third-party fees associated with implementing these services. These fees are paid in the same manner as the monthly franchise fees.
Prospective franchisees should carefully consider these third-party fees as part of their overall investment and operating costs. It is important to understand the terms and conditions of the Third-Party Distribution Program and the potential costs associated with reservation and booking fees. Additionally, franchisees should be aware of the fees for voice reservation services and any setup costs involved. Understanding these fees is crucial for managing expenses and ensuring profitability.