When is the Reactivation Fee due for a Sonesta Simply Suites franchise?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
under its terms. |
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS (Note 1) |
|---|---|---|---|
| Reactivation Fee | The lesser of 25% of past due balances or $2,000 | Prior to reactivation | If we have suspended your Hotel from the Reservation System because of a default under your Franchise Agreement, and you have cured the default, we may require you t |
Source: Item 6 — OTHER FEES (FDD pages 25–36)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, the Reactivation Fee is due prior to reactivation. This fee is required if Sonesta Simply Suites has suspended a hotel from the Reservation System due to a default under the Franchise Agreement. If the franchisee cures the default, Sonesta Simply Suites may require payment of the Reactivation Fee as a condition of restoring access to the reservation system.
The amount of the Reactivation Fee is the lesser of 25% of the past due balances or $2,000. This means a franchisee will pay either 25% of what they owe or $2,000, whichever is smaller.
For a prospective Sonesta Simply Suites franchisee, this means that if they fall into default and have their access to the reservation system suspended, they will need to pay this Reactivation Fee before they can regain access, in addition to curing the initial default. This could represent a significant cost, especially if the past due balances are substantial.