What is the amount of the Reactivation Fee for a Sonesta Simply Suites franchise?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
under its terms. |
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS (Note 1) |
|---|---|---|---|
| Reactivation Fee | The lesser of 25% of past due balances or $2,000 | Prior to reactivation | If we have suspended your Hotel from the Reservation System because of a default under your Franchise Agreement, and you have cured the default, we may require you t |
Source: Item 6 — OTHER FEES (FDD pages 25–36)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, the Reactivation Fee is the lesser of 25% of the past due balances or $2,000. This fee is due prior to reactivation.
This fee is charged if Sonesta Simply Suites has suspended a hotel from the Reservation System due to a default under the Franchise Agreement. If the franchisee cures the default, Sonesta Simply Suites may require payment of this fee as a condition of reactivating the hotel's access to the Reservation System.
The fee is designed to cover the administrative costs and potential losses associated with the franchisee's default and the subsequent reactivation process. It also serves as an incentive for franchisees to maintain compliance with the Franchise Agreement to avoid suspension from the Reservation System. Prospective franchisees should understand the conditions under which this fee may be imposed and factor it into their financial planning.