When is the onboarding administration fee due for a Sonesta Simply Suites franchise?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
e Franchise Agreement.
Other Initial Fees
If you are entering into the Franchise Agreement for a newly constructed Brand Hotel, or if you are converting an existing hotel into a Brand Hotel, you will pay us an onboarding administration fee of $2,500 for the onboarding services we provide to you in connection with the opening of your Hotel. If you are acquiring an existing Brand Hotel, you will pay us a reduced onboarding administration fee of $2,000. This fee is non-refundable and is due during or immediately after the onboarding process. During the 2024 fiscal year, we charged an onboarding adm
Source: Item 5 — INITIAL FEES (FDD pages 23–25)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, franchisees must pay an onboarding administration fee. The amount of this fee depends on whether the franchisee is opening a newly constructed hotel or acquiring an existing one. For a newly constructed Sonesta Simply Suites or a conversion of an existing hotel, the fee is $2,500. If the franchisee is acquiring an existing Sonesta Simply Suites, the fee is reduced to $2,000.
The onboarding administration fee covers the cost of onboarding services that Sonesta Simply Suites provides to franchisees in connection with the opening of their hotel. This fee is non-refundable, meaning that franchisees will not receive a refund of this fee under any circumstances.
Importantly, the FDD states that the onboarding administration fee is due "during or immediately after the onboarding process." This means that franchisees should be prepared to pay this fee at some point during the period when Sonesta Simply Suites is providing onboarding services, or very shortly after those services have been completed. Franchisees should clarify with Sonesta Simply Suites the exact timing of when this fee will be due to ensure they are prepared to make the payment.