What is the range for Lender Comfort Letter Fee 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 |
|---|---|---|---|---|---|
| Lender Comfort | $2,000 | $2,000 | Lump sum | As incurred | Us |
| Letter Fee | |||||
| (Note 20) |
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 Lender Comfort Letter Fee is $2,000 for both new construction and conversion projects. This fee is paid as a lump sum to Sonesta Simply Suites when it is incurred. According to Note 20 in the FDD, this fee covers the administrative costs associated with the review and processing of lender comfort letter requests.
This fee is a relatively small part of the overall initial investment for a Sonesta Simply Suites franchise, but it is an important consideration for franchisees who are seeking financing. A lender comfort letter is a document that provides assurance to a lender that the franchisor is supportive of the franchisee's business. This letter can help the franchisee to obtain financing on more favorable terms.
Prospective franchisees should factor this fee into their budget and be prepared to pay it when they request a lender comfort letter from Sonesta Simply Suites. Understanding what this fee covers and its role in securing financing is crucial for financial planning.