What is the maximum Travel Agency Commission Settlement Fee for a Sonesta Simply Suites franchise?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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OTHER FEES
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS (Note 1) |
|---|---|---|---|
| Royalty | 5% of Gross Rooms Revenue | Payable monthly by the 20th day of the following month | See Note 2. |
Source: Item 6 — OTHER FEES (FDD pages 25–36)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, the Travel Agency Commission Settlement Fee can be up to $0.85 per transaction. This fee is payable monthly by the 20th day of the following month.
The purpose of this fee is to cover the costs associated with using a third-party travel agent commission settlement program, which Sonesta Simply Suites may require franchisees to use. This program is used to manage commission payments to travel agencies.
It is important to note that while the settlement fees are expected to be no more than $0.85 per transaction, this amount may change periodically if the third-party provider increases their fees. Additionally, Sonesta Simply Suites may either have the franchisee pay the third-party provider directly or collect the fees themselves and remit payment to the third-party, potentially less an administrative fee per transaction. Therefore, franchisees should stay informed about potential changes to these fees and how they are collected.