When is the Guest Room Addition Fee due for a Sonesta Simply Suites franchise?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
ees. See Note 9. |
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS (Note 1) |
|---|---|---|---|
| American Hotel & Lodging Association Fee ("AHLA") | $4.50 per room per year | Payable monthly by the 20th day of the following month | You will be enrolled automatically as a member of the AHLA each year, but you will be given an opportunity, on an annual basis, to opt out of participation. While enrolled, you will pay this fee to us, which we will remit to the AHLA. |
| Reservation System Maintenance Fee: Future Rate and Inventory | st occurrence $250 – 1 nd occurrence $500 – 2 $1,000 – per occurrence thereafter | As billed | We charge this fee if you fail to meet our performance standard of maintaining on the Central Reservation System at least 12 months of your advance room rates and inventory at all times. See Note 9. |
| Reservation System Maintenance Fee: Central Reservation System Services | $150 per occurrence | As billed | You incur this fee if you request additional assistance with performing Central Reservation System maintenance. See Note 9. |
| Alternative Payment Fee | $25 processing fee per each occurrence for paper check. 3.5% processing fee for credit card payment. | As billed | This fee will be charged if you request that we process payments using a method other than direct debit. |
| Guest Room Addition Fee | The greater of $400 per additional Guest Room or $5,000 | When you submit an application to add Guest Rooms | If you add or construct additional Guest Rooms at your Hotel after signing the Franchise Agreement, you will pay us this fee. |
| Audit | Cost of audit, including the charges of attorneys and independent accountants and the travel expenses, room and board, and compensation of our employees | As billed | This is payable only if we find that you have underreported Gross Rooms Revenue by 2% or more, or if the audit is caused by your failure to |
Source: Item 6 — OTHER FEES (FDD pages 25–36)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, the Guest Room Addition Fee is due when you submit an application to add Guest Rooms. This fee applies if a franchisee adds or constructs additional guest rooms at their hotel after signing the Franchise Agreement. The fee is the greater of $400 per additional guest room or $5,000. This fee is payable to Sonesta Simply Suites.
This means that if a franchisee decides to expand their Sonesta Simply Suites location by adding more rooms, they must pay this fee at the time they formally apply for permission to do so. The fee covers Sonesta Simply Suites's administrative and oversight costs associated with the expansion.
For a prospective Sonesta Simply Suites franchisee, this is an important consideration for future expansion plans. It is crucial to factor this cost into any financial projections for adding guest rooms to the hotel. Understanding the timing of the fee payment, specifically when submitting the application, allows for better financial planning and budgeting for potential expansion projects.