What investment and effort are required to obtain a Sonesta Simply Suites franchise?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- C.
We grant to persons who we determine satisfactorily meet our qualifications, and who confirm their willingness to undertake the investment and effort, a franchise to own and operate a Brand Hotel offering the products and services we authorize and using our and our affiliates' distinct business formats, methods, procedures, signs, designs, layouts, standards, specifications, and Marks (the "Franchise System"), which we may improve, further develop, or modify.
You agree, at your expense, to (1) obtain any and all required zoning changes, planning consents, building, utility, sign and business permits and licenses, liquor license and any other consents, permits and licenses necessary to lawfully open and operate your Hotel; (2) construct all required improvements in compliance with the PIP and any other construction plans and specifications approved by us; (3) decorate your Hotel in compliance with plans and specifications approved by us; and (4) obtain all customary contractors' sworn statements and partial and final waivers of lien for construction, remodeling, decorating and installation services. You agree to use the vendor(s) we select, if any (which may include us or our affiliates), for design, engineering, construction management and purchasing services in connection with the conversion of your Hotel.
- E. Professional Photography. You must arrange a professional photography session at your Hotel prior to the Opening Date. Further, if at any time during the Term your Hotel undergoes significant renovations or you make improvements in accordance with a PIP that we issue to you, we may require you to hire a professional photographer, approved by us, to conduct an additional photography session for your Hotel. All photography sessions will be at your sole expense and will be paid to us, unless we direct you to pay the third-party vendor directly.
You must deliver to us, prior to the Opening Date, and in any event no later than thirty (30) days after the Effective Date, either a deed reflecting your ownership of the Premises (the "Deed") or a copy of your lease for the Premises that allows you the right to enter into the Franchise Agreement (the "Lease"). If you fail to timely provide us the Deed or Lease, we may immediately terminate the Franchise Agreement.
We charge a loyalty program fee for your participation in the Sonesta Travel Pass program in the amount of 2.5% of your Hotel's Qualified Revenue (defined below) from guests participating in the Sonesta Travel Pass program, payable at the same time and in the same manner as Royalty Fees. We reserve the right, at any time, upon notice to you, to increase the loyalty program fee; provided, that the loyalty program fee that we impose shall not exceed 4.5% of your Hotel's Qualified Revenue.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Sonesta Simply Suites grants franchises to individuals who meet their qualifications and are willing to invest the necessary capital and effort to operate a hotel under the Sonesta Simply Suites brand. This includes adhering to the brand's established business formats, methods, procedures, standards, and use of their trademarks. Prospective franchisees must demonstrate a commitment to upholding the standards of the Sonesta Simply Suites Franchise System, which may be improved or modified over time by the company.
As part of the process of opening a Sonesta Simply Suites franchise, franchisees are typically required to develop and execute a Property Improvement Plan (PIP). This plan outlines the renovations and improvements necessary to meet the brand's standards. The franchisee is responsible for covering the expenses associated with these renovations, including obtaining necessary permits and licenses, and ensuring that all construction complies with the PIP and any additional plans approved by Sonesta Simply Suites. Franchisees may also be required to use vendors selected by Sonesta Simply Suites for design, engineering, construction management, and purchasing services related to the conversion of their hotel.
Furthermore, franchisees must arrange a professional photography session for their hotel before the opening date. If significant renovations or improvements are made during the term of the franchise agreement, Sonesta Simply Suites may require an additional photography session. These photography sessions are at the franchisee's sole expense, payable to Sonesta Simply Suites or a third-party vendor as directed. Franchisees are also required to deliver either a deed reflecting ownership of the premises or a copy of their lease, ensuring they have the right to operate the franchise. Failure to provide this documentation may result in termination of the franchise agreement.
In addition to these initial investments, franchisees must participate in the Sonesta Travel Pass loyalty program, incurring a fee of 2.5% of the hotel's qualified revenue from participating guests, payable in the same manner as royalty fees. Sonesta Simply Suites reserves the right to increase this fee up to 4.5% of qualified revenue with notice. While company-owned hotels may pay a different rate, the fee structure highlights an ongoing financial obligation for franchisees to maintain brand standards and participate in brand programs.