Does the Sonesta Simply Suites Franchise Agreement mention a room addition fee for a Sonesta Simply Suites franchise?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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acknowledge that this Section 3.I is not our agreement to accept any payments after they are due or our commitment to extend credit to, or otherwise finance your operation of, your Hotel.
- J. Room Addition Fee. If you add or construct additional Guest Rooms at your Hotel at any time after you sign this Agreement, you will pay us a nonrefundable fee equal to the greater of $400 per additional Guest Room or $5,000 (the "Room Addition Fee"). You must pay the Room Addition Fee to us when you submit an application for our approval to add any Guest Rooms to your Hotel, and you must submit that application to us before you enter into any agreement to add a
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, the Franchise Agreement does address fees associated with adding guest rooms to a hotel. Specifically, if a franchisee adds or constructs additional guest rooms at their Sonesta Simply Suites hotel after signing the Franchise Agreement, they must pay Sonesta Simply Suites a nonrefundable "Room Addition Fee."
The Room Addition Fee is the greater of $400 per additional guest room or $5,000. This fee is due when the franchisee submits an application for approval to add guest rooms, and this application must be submitted before entering into any agreement to add rooms.
Sonesta Simply Suites may also require the franchisee to modernize, rehabilitate, or upgrade the hotel as a condition of approving the application to add guest rooms. This means that in addition to the Room Addition Fee, a franchisee might incur significant additional expenses to meet Sonesta Simply Suites's standards if they wish to expand their hotel.