When is the PIP Fee due for a Sonesta Simply Suites franchise?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
TMENT SONESTA SIMPLY SUITES (Note 1) – 100 ROOMS**
| Type Of Expenditure | Amount Conversion | New Construction | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|---|
| Initial Fee (Note 2) | $50,000 | $50,000 | Lump sum | Upon your |
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 PIP Fee, which is $5,000 for conversions, is due before you sign the Franchise Agreement. This fee covers the cost of preparing or verifying completion of the Property Improvement Plan (PIP). The PIP outlines the items a franchisee must complete to convert a property to a Sonesta Simply Suites branded hotel, according to the brand standards.
For a prospective franchisee, this means that the $5,000 PIP fee is one of the initial costs that must be paid upfront before the franchise agreement is finalized. This fee is non-refundable, regardless of whether the franchisee proceeds with the conversion after the PIP is prepared. It is important to carefully review the PIP and understand the required improvements and associated costs before signing the franchise agreement.
Additionally, if a Sonesta Simply Suites hotel fails the initial PIP inspection, the franchisee may incur a PIP reinspection fee, which can range from $0 to $5,000. This fee would be due as incurred and paid to the franchisor. Therefore, it is crucial for franchisees to ensure they meet all the requirements outlined in the PIP to avoid additional costs associated with reinspection.