What is the onboarding administration fee for a newly constructed Sonesta Simply Suites hotel?
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 entering into an agreement for a newly constructed hotel will pay an onboarding administration fee of $2,500. This fee covers the onboarding services that Sonesta Simply Suites provides in connection with the hotel's opening. The FDD specifies that this fee is non-refundable and is due during or immediately after the onboarding process.
It is important to note that while the standard onboarding administration fee for a newly constructed hotel is $2,500, the FDD also indicates that during the 2024 fiscal year, Sonesta Simply Suites charged onboarding administration fees ranging from $1,000 to $2,500. This suggests that the actual fee may vary, and prospective franchisees should confirm the exact amount with Sonesta Simply Suites before signing the Franchise Agreement.
In addition to the onboarding administration fee, franchisees should be aware of other potential fees associated with opening a new Sonesta Simply Suites hotel, such as fees for IT system and property management system configuration, photography expenses, custom architecture and design review, and revenue management system installation. These fees can add significantly to the initial investment, so it is crucial for prospective franchisees to carefully review Item 7 of the FDD and discuss all potential costs with Sonesta Simply Suites.