How often is the call 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 fee for Sonesta Simply Suites is subject to adjustment, but no more than once per year. The call center charges franchisees a fee of $4.00 for each call received.
This "Fee Adjustment" allows Sonesta Simply Suites to increase the call fee at their discretion, up to the greater of two options: either (i) 5% annually (or 10% for TMC and Consortia Fees and Operations Insights fees), on a compounding basis, regardless of whether they exercised such adjustment in any calendar year, or (ii) the percentage difference in the CPI (Consumer Price Index) 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.
For a prospective Sonesta Simply Suites franchisee, this means the cost of the call center service could increase annually, impacting their operating expenses. It is important to factor in potential fee adjustments when projecting profitability and budgeting for ongoing costs. Franchisees should pay close attention to any notices regarding fee adjustments and understand how the CPI or the set percentage increase will affect their call center expenses.