Is a Sonesta Simply Suites franchisee obligated to pay fees to third parties through Sonesta?
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 Sonesta Simply Suites' 2025 Franchise Disclosure Document, franchisees may be obligated to pay certain fees to third parties through Sonesta. Sonesta Simply Suites may periodically require franchisees to pay fees due to third parties, which Sonesta will collect on behalf of those third parties and then remit to them.
Additionally, franchisees are responsible for all booking fees, reservation fees, and commissions related to the operation of their hotel. These fees may be payable directly to a third party or advanced by Sonesta to the third party and then billed to the franchisee.
Furthermore, franchisees must participate in Sonesta Simply Suites' Third-Party Distribution Program and are responsible for reservation fees, including third-party booking fees and global distribution system fees, for stays booked through these third-party websites. The FDD also states that if hotel guests pay for stays booked at the franchisee's hotel through those websites directly, Sonesta has the right to collect revenues paid to the OTAs on the franchisee's behalf, and if collected remit the revenue to the franchisee less any amounts owed to Sonesta.