To whom is the PIP Fee paid 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 signing of the Franchise Agreement | Us |
| Onboarding | $2,500 | $2,500 | Lump |
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 ranges from $0 to $5,000, is paid to the franchisor, referred to as "Us" in the document. This fee is due before you sign the Franchise Agreement. The PIP Fee covers the cost of preparing or verifying completion of the Property Improvement Plan (PIP). A PIP outlines the items a franchisee must complete to convert their property to a Sonesta Simply Suites branded hotel, in accordance with the brand standards.
If a Sonesta Simply Suites franchisee fails the initial PIP inspection, a reinspection may be required, incurring an additional fee. This reinspection fee, also paid to the franchisor, ranges from $0 to $5,000 and is paid as incurred. These fees are non-refundable, as stated in Note 1.
In summary, the PIP Fee and any subsequent reinspection fees are paid directly to Sonesta Simply Suites, the franchisor, and are associated with ensuring the property meets the brand's standards during the conversion process.