Are Sonesta Simply Suites franchisees responsible for booking fees and commissions?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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. We have the right to rename certain programs, add or remove programs, and modify fees for various elements of the Franchise System and other services as described in the Brand Manual, this Agreement or otherwise provided to you in writing, and upon 30 days' notice to you. If you request that we provide extraordinary services, such as amendments you request, amendments necessitated by your action or inaction, a lender comfort letter, or other documentation outside the ordinary course of business, you must pay us an administrative fee for each such letter or document (currently $2,000 per lender comfort
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, franchisees are responsible for covering all booking fees, reservation fees, and commissions associated with operating their hotel. These fees could be paid directly to a third party or advanced by Sonesta Simply Suites to a third party and then billed to the franchisee.
In addition to booking fees and commissions, franchisees must also pay other fees each month starting from the hotel's opening date. These additional fees stem from the hotel's operations and participation in required programs, such as technology fees and brand conference fees, as detailed in the Brand Manual. These fees are subject to change over time.
The FDD states that a summary of the currently applicable booking fees, commissions, and other fees is provided in Schedule 3.H, but these fees are subject to change. Sonesta Simply Suites has the right to modify fees for various elements of the Franchise System and other services with 30 days' notice.
Prospective franchisees should carefully review Schedule 3.H and the Brand Manual to understand the full scope of potential fees and how they might impact their profitability. It is also important to inquire about any potential fee adjustments or changes that may occur during the franchise term.