How does the Sonesta Simply Suites Franchise Agreement specify the application of payments?
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.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, franchisees are required to make payments via the same method and at the same time as their monthly franchise fees. This standardization likely streamlines the payment process for both the franchisee and Sonesta Simply Suites.
In addition to franchise fees, Sonesta Simply Suites franchisees may also be required to pay fees to third parties, which Sonesta Simply Suites will collect and remit on their behalf. Franchisees are also responsible for covering booking fees, reservation fees, and commissions associated with operating their hotel. These fees can be paid directly to a third party or advanced by Sonesta Simply Suites and then billed to the franchisee.
Furthermore, franchisees must pay Sonesta Simply Suites a Property Improvement Plan (PIP) fee in connection with hotel inspections and the issuance of any PIP. The PIP fee is currently up to $5,000, but this is subject to Fee Adjustments as defined in Schedule 3.H. These additional fees highlight the importance of franchisees understanding all potential costs associated with operating a Sonesta Simply Suites franchise.