How often is the call center fee subject to adjustment for Sonesta Simply Suites franchisees?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
all use of it upon termination of this Agreement. You may not use the telephone number in any advertising or on any websites without our prior written approval. We reserve the right to cancel, amend, or replace the Services, in our sole discretion, upon thirty (30) d
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, the call center fee for Sonesta Simply Suites is subject to adjustment no more than once per year. The fee is currently set at $4.00 for each call received by the Call Center.
The "Fee Adjustment" is defined as an increase at Sonesta Simply Suites' discretion by up to the greater of (i) 5% annually (or 10% for TMC and Consortia Fees and Operations Insights fees), on a compounding basis regardless of whether they exercise such adjustment in any calendar year, or (ii) the difference, expressed as a percentage, in CPI as determined by comparing the CPI in effect as of the Effective Date to the CPI in effect as of the Fee Adjustment, without reference to any prior Fee Adjustment, if any. "CPI" means the National Consumer Price Index-All Urban Consumers-All Items (1982-1984 = 100) published by the U.S. Department of Labor (or if the CPI is no longer published, another substitute reference reasonably designated by us).
This means that Sonesta Simply Suites franchisees could see their call center fees increase annually, but the increase is capped based on either a fixed percentage or the change in the Consumer Price Index (CPI), whichever is greater. The compounding basis indicates that any unexercised adjustments from previous years can be added to the current year's potential adjustment, which could lead to more significant fee increases over time. Franchisees should factor in these potential fee adjustments when projecting their operating costs.