Does the Sonesta Simply Suites Franchise Agreement mention third-party fees for a Sonesta Simply Suites franchise?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
nue. However, we have the right, at any time and on notice to you, to increase the Brand Promotion Fee, provided that the Brand Promotion Fee shall not exceed 4.5% of your Hotel's Gross Rooms Revenue.
- 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 any PIP, and if applicable, reinspection following a failed PIP inspection, you will pay us our then current PIP fee (currently, up to $5,000, subject to Fee Adjustments (as defined in Schedule 3.H)).
- H. Booking Fees and Commissions; Other Fees. You are responsible for the payment of all booking fees, reservation fees, and commissions incurred in connection with the operation of your Hotel, whether payable directly to a third-party or advanced by us to such third-party and billed to you. In addition, beginning on the Opening Date, you will pay to us for each month, or as otherwise billed, other fees resulting from the operation of your Hotel and the programs in which you are or will be required to participate as further described in the Brand Manual (such as technology fees and brand conference fees), which may change from time to time. A summary of the currently applicable booking fees, commissions, and other fees is set forth in Schedule 3.H. Such fees are subject to change.
You will pay to us such other fees designated in this Agreement, in the Brand Manual, or otherwise provided to you in writing, which may be made available to you electronically through the Franchise System's online franchisee portal.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, franchisees may encounter third-party fees. Sonesta Simply Suites may periodically require franchisees to pay fees due to third parties, which Sonesta Simply Suites will collect and remit on their behalf.
Additionally, franchisees are responsible for all booking fees, reservation fees, and commissions related to the operation of their hotel, whether paid directly to a third party or advanced by Sonesta Simply Suites and billed to the franchisee. A summary of currently applicable booking fees, commissions, and other fees is detailed in Schedule 3.H, though these fees are subject to change.
Moreover, the Third-Party Distribution Program outlines that Sonesta Simply Suites has agreements with intermediaries for various distribution channels, including online travel agencies (OTAs). Franchisees are responsible for reservation fees, including third-party booking fees, global distribution system (GDS) fees, and fees associated with the central reservation office and Central Reservation System, for stays booked through these websites. If hotel guests pay OTAs directly, Sonesta Simply Suites has the right to collect those revenues and remit them to the franchisee, less any amounts owed to Sonesta Simply Suites.