When is the onboarding fee due for a Sonesta Simply Suites franchise?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type Of Expenditure | Amount Conversion | New Construction | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|---|
| Onboarding | $2,500 | $2,500 | Lump sum | As arranged | Us |
Note 3 If you are acquiring an existing Brand Hotel, you will pay us a reduced onboarding administration fee of $2,000.
Note 1 We have estimated costs based on a 100-room Brand Hotel. None of the fees payable to us are refundable. Amounts payable to third parties are non-refundable unless the supplier agrees otherwise.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT SONESTA SIMPLY SUITES (Note 1) – 100 ROOMS (FDD pages 36–42)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, the onboarding fee, which ranges from $2,000 to $2,500, is due 'as arranged' with the franchisor. The standard onboarding fee for a new Sonesta Simply Suites hotel is $2,500. However, if a franchisee is acquiring an existing branded hotel, they will pay a reduced onboarding administration fee of $2,000.
This 'as arranged' payment schedule provides some flexibility, but it's crucial for prospective franchisees to clarify the specific payment terms with Sonesta Simply Suites during their due diligence. Understanding when and how this fee is to be paid will help in managing the initial investment costs effectively. Franchisees should confirm whether there are any specific milestones or conditions that trigger the payment of the onboarding fee.
It is important to note that, like other fees payable to Sonesta Simply Suites, the onboarding fee is non-refundable. Therefore, franchisees should ensure they fully understand the services and support they will receive in return for this fee. This will help in making an informed decision and avoiding any potential financial risks associated with the franchise investment.