What is the Guest Room Addition Fee for a Sonesta Simply Suites franchise, and when is it due?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS (Note 1) |
|---|---|---|---|
| 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. |
Source: Item 6 — OTHER FEES (FDD pages 25–36)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, a Guest Room Addition Fee is required 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 due when the franchisee submits an application to add guest rooms.
This fee could represent a significant cost for franchisees planning to expand their Sonesta Simply Suites location. For instance, adding 10 guest rooms would result in a fee of $5,000 (since $400 x 10 = $4,000, and the greater of $4,000 and $5,000 is $5,000). However, adding 20 rooms would result in a fee of $8,000 (since $400 x 20 = $8,000, which is greater than $5,000).
It is important for prospective franchisees to factor this potential fee into their long-term financial planning, especially if they anticipate expanding their hotel's capacity. Understanding the timing of the fee payment, specifically upon application submission, allows franchisees to budget accordingly and ensure they have sufficient capital available when initiating expansion projects.