By what day of each month must the royalty fee be paid to Sonesta Simply Suites?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- for onboarding services we provide to you in connection with the opening of your Hotel as a Brand Hotel. This fee is non-refundable and is due during or immediately after the onboarding process.
- C. Royalty Fee. Beginning on the earlier of (a) the Opening Date, or (b) the date you begin operating your Hotel under the Marks, you will pay to us via ACH in U.S.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, the monthly royalty fee, which is 5% of Gross Rooms Revenue, must be paid via ACH in U.S. dollars on or before the twentieth (20th) day of each month, including the final month of the Term. The royalty fee accrues during the preceding calendar month.
This means that as a Sonesta Simply Suites franchisee, you are obligated to ensure that the royalty payment is successfully transmitted to Sonesta Simply Suites by the 20th of each month. The payment covers the revenue generated from guest rooms during the previous month. The method of payment is specified as ACH (Automated Clearing House), indicating an electronic transfer of funds directly from your bank account.
It is important to note that failure to remit the royalty fee by the due date could result in penalties or other repercussions as outlined in the franchise agreement. Franchisees should maintain accurate records of their Gross Rooms Revenue to ensure accurate royalty payments and avoid potential discrepancies or disputes with Sonesta Simply Suites.