Does the Sonesta Simply Suites Franchise Agreement mention an initial fee?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Marks by the Opening Date, you will pay to us, as damages for failure to open on time and not as a penalty, our then-current Opening Date rescheduling fee (currently up to $5,000).
3. FEES.
A. Initial Fee. You must pay us at the time of your execution of this Agreement a non-refundable initial fee in the amount of $50,000 or $400 per Guest Room (defined below), whichever is greater (the "Initial Fee"). The Initial Fee must be paid to us by cashier's check, bank certified check, wire transfer. ACH. or credit card.
"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 Gues
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
Yes, according to the 2025 Sonesta Simply Suites Franchise Disclosure Document, an initial fee is required. The initial fee is non-refundable and must be paid when the Franchise Agreement is executed. The amount due is the greater of $50,000 or $400 per guest room.
The FDD specifies acceptable payment methods for the initial fee, including cashier's check, bank certified check, wire transfer, ACH, or credit card. The number of approved guest rooms is identified in Exhibit A of the Franchise Agreement.
This initial franchise fee is a fairly standard practice in the franchise industry. It compensates Sonesta Simply Suites for granting the franchise rights, providing initial training, and offering pre-opening support. Because the fee is non-refundable, prospective franchisees should carefully evaluate the opportunity before signing the agreement.