Is a Sonesta Simply Suites franchisee required to participate in the loyalty program?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 3 – Your Hotel must participate in the loyalty program (as it may be modified) for as long as we choose to offer a loyalty program. See Item 11 for additional details related to our current loyalty program. The loyalty program contribution is currently 2.5% of Qualified Revenue. "Qualified Revenue" includes (a) Qualifying Rates (defined below), and (b) at our discretion, any other items charged to the loyalty program member not defined in item (a). "Qualifying Rates" include: (1) non-discounted rates; (2) standard corporate rates; (3) leisure rates; (4) government rates; (5) corporate and negotiated rates; (6) conference and meeting rates; and (7) individual Hotel contract rates. We may increase your loyalty program contribution up to 4.5% of your Hotel's Qualified Revenue.
Source: Item 6 — OTHER FEES (FDD pages 25–36)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, participation in the loyalty program is mandatory. The FDD states that a franchisee's hotel must participate in the loyalty program as long as Sonesta Simply Suites chooses to offer one. This condition is subject to modifications that Sonesta Simply Suites may implement.
The loyalty program contribution is currently 2.5% of Qualified Revenue, which includes Qualifying Rates and, at Sonesta Simply Suites's discretion, any other items charged to the loyalty program member not defined in item (a). Qualifying Rates encompass non-discounted rates, standard corporate rates, leisure rates, government rates, corporate and negotiated rates, conference and meeting rates, and individual Hotel contract rates.
Sonesta Simply Suites retains the right to increase the loyalty program contribution up to 4.5% of the hotel's Qualified Revenue. This means that franchisees must budget for this ongoing fee and be aware that it could increase over time, impacting their overall profitability. Franchisees should inquire about the specific terms and conditions of the loyalty program, including any potential changes or additional costs, to fully understand their financial obligations.