What is the Direct Connect Fee per transaction for Sonesta Simply Suites?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| Fee | Fee | Current Applicable Fees |
|---|---|---|
| (Subject to Change) | ||
| Travel Agency Commission Settlement Fee 4 | Up to $0.85 per transaction | |
| Groups, Meetings, and Events1, 4 | 3% on consumed master folio per group | |
| Direct Connect Fee 4 | $1.75 per transaction | |
| Brand.com 4 | $1.75 per transaction | |
| Internet Distribution System (IDS) Fee 4 | $4.00 per transaction | |
| Voice Reservation Service with Auto Attendant Fee 4 | $4.00 per call | |
| Global Distribution Systems (GDS) Fee 4 | $10.50 per transaction | |
| TMC and Consortia Fees 4 | 3.25% of gross revenue generated from bookings consumed through travel agencies (“Consumed Revenue”) | |
| Ignite Booking Program (Annual Fee) 4 | $500 per year (or $800 per year if integrated with Delphi Sales System), payable on a calendar year basis without proration for partial calendar years | |
| Ignite Booking Program (Monthly Fee) 4 | 7% on consumed master folio per group | |
| Business Pass Booking Program 4 | Not currently charged, but anticipated to be $350 per year, payable on a calendar year basis without proration for partial calendar years |
Source: Item 23 — RECEIPTS (FDD pages 80–246)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, the Direct Connect Fee is $1.75 per transaction. This fee, as with other fees listed, is subject to change. For a franchisee, this means that for every transaction processed through a direct connection, Sonesta Simply Suites will charge $1.75.
It's important to note that this fee is in addition to other fees that Sonesta Simply Suites charges, such as the Technology Fee of $9 per guest room per month, Market Intelligence fee of $275 per month, and various other program fees. These fees can significantly impact a franchisee's profitability, so understanding the transaction volume and how it relates to these fees is crucial.
Prospective franchisees should carefully consider the potential impact of the Direct Connect Fee and other transaction-based fees on their overall costs. They should also inquire about the circumstances under which these fees might change and how much advance notice Sonesta Simply Suites provides before implementing any changes. Understanding these costs is essential for accurate financial forecasting and assessing the overall viability of the franchise.