Is the PIP Fee refundable for a Sonesta Simply Suites franchise?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
nistration fee ranging from $1,000 to $2,500.
If you are converting an existing hotel into a Brand Hotel, prior to the execution of the Franchise Agreement, you must pay us up to $5,000 ("PIP Fee") to cover our costs to perform an initial inspection of your property, prepare a property improvement plan ("PIP"), and verify completion of the PIP. The PIP will set forth a list of property improvements that you must make to convert your property to a Brand Hotel under the Brand Standards. The PIP Fee is nonrefundable. If we are required to reinspect your Hotel to ensure you have complied with the PIP, you must pay us a PIP reinspection fee of up to $5,000. These fees w
Source: Item 5 — INITIAL FEES (FDD pages 23–25)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, the PIP (Property Improvement Plan) Fee is nonrefundable. If a franchisee is converting an existing hotel into a Sonesta Simply Suites branded hotel, they must pay up to $5,000 to cover the costs associated with the initial inspection of the property, the preparation of the PIP, and the verification of the PIP's completion.
This fee is required before the execution of the Franchise Agreement. The PIP outlines the property improvements necessary to meet Sonesta Simply Suites's brand standards. Additionally, if a reinspection of the hotel is required to ensure compliance with the PIP, the franchisee must pay a PIP reinspection fee of up to $5,000, which is also non-refundable.
This non-refundable policy means that even if the conversion does not proceed or if the costs of the property improvements are less than anticipated, the franchisee will not receive a refund of the PIP Fee or the reinspection fee. Prospective franchisees should factor this into their financial planning and due diligence when considering converting an existing hotel to a Sonesta Simply Suites franchise.