Does the Sonesta Simply Suites Franchise Agreement mention property improvement plan fees?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
enue.
- F. Third-Party Fees. We periodically may require you to pay us fees due from you to third parties, which we will collect on behalf of such third parties and remit to such third parties.
- G. Property Improvement Plans Fees. In connection with our inspections of your Hotel and issuance of
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
Yes, the 2025 Franchise Disclosure Document for Sonesta Simply Suites outlines fees associated with Property Improvement Plans (PIPs). Specifically, in connection with inspections of a franchisee's hotel and the issuance of any PIP, Sonesta Simply Suites may charge a fee. This fee also applies to reinspections following a failed PIP inspection.
The current PIP fee can be up to $5,000, but this amount is subject to adjustments as defined in Schedule 3.H of the Franchise Agreement. This means the fee could increase over time, potentially impacting a franchisee's costs for maintaining brand standards and addressing any required property improvements.
It is important for prospective Sonesta Simply Suites franchisees to understand that these PIP fees are in addition to the costs associated with actually completing the improvements outlined in the PIP. Franchisees should carefully review Schedule 3.H and discuss with Sonesta Simply Suites the potential for fee adjustments and the typical scope and cost of required property improvements to accurately budget for these expenses.