Under what condition will Sonesta Select Sonesta Essential countersign the Franchise Agreement?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
EES**
Initial Fee
You must pay us an initial fee equal to: the greater of $65,000 or $500 per Guest Room (as defined below) for a Sonesta Select-branded hotel, or equal to the greater of $45,000 or $500 per Guest Room for a Sonesta Essential-branded hotel (the "Initial Fee"), when you sign the Franchise Agreement. The Initial Fee is fully earned and non-refundable and must be paid before we will countersign the Franchise Agreement.
"Guest Room" means each rentable unit in your Hotel generally used for overnight guest accommodations, the entrance to which is controlled by the same key. Adjacent Guest Rooms with connecting doors that can be rented as separate units are considered separate Guest Rooms. The initial number of approved Guest Rooms will be identified on Exhibit A to the Franchise Agreement.
During the 2024 fiscal year, we charged discounted Initial Fees for Sonesta Select-branded hotels ranging from $40,000 (with 148 Guest Rooms) to $65,000 (with 134 Guest Rooms), and for Sonesta Essential-branded hotels ranging from $5,000 (wit
Source: Item 5 — INITIAL FEES (FDD pages 23–24)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, Sonesta Select Sonesta Essential will countersign the Franchise Agreement after the franchisee pays the initial fee. The initial fee is the greater of $65,000 or $500 per Guest Room for a Sonesta Select-branded hotel. For a Sonesta Essential-branded hotel, the initial fee is the greater of $45,000 or $500 per Guest Room.
The number of Guest Rooms will be identified on Exhibit A to the Franchise Agreement. The FDD notes that the initial fee is fully earned and non-refundable.
In 2024, discounted Initial Fees for Sonesta Select-branded hotels ranged from $40,000 (with 148 Guest Rooms) to $65,000 (with 134 Guest Rooms). For Sonesta Essential-branded hotels, the discounted initial fees ranged from $5,000 (with 172 Guest Rooms) to $45,000 (with 131 Guest Rooms).