What is the initial franchise fee for a new construction Sonesta Simply Suites location?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type Of Expenditure | Amount Conversion | New Construction | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|---|
| Initial Fee (Note 2) | $50,000 | $50,000 | Lump sum | Upon your signing of the Franchise Agreement | Us |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT SONESTA SIMPLY SUITES (Note 1) – 100 ROOMS (FDD pages 36–42)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, the initial franchise fee for a new construction location is $50,000. This fee is paid in a lump sum upon signing the Franchise Agreement and is payable to Sonesta Simply Suites. The FDD notes this fee is based on the assumption that the hotel has 100 guest rooms and therefore must pay the minimum Initial Fee.
This initial fee is part of the estimated initial investment for a 100-room Sonesta Simply Suites hotel, which ranges from $9,954,950 to $16,413,220 for new construction. It's important to note that this fee, like all fees payable to Sonesta Simply Suites, is non-refundable.
Prospective franchisees should be aware of the payment schedule and ensure they have the required capital available when signing the franchise agreement. Understanding the non-refundable nature of the fee is also crucial for financial planning and risk assessment.