factual

Can Sonesta Simply Suites require franchisees to pay fees due to third parties?

Sonesta_Simply_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

nue. However, we have the right, at any time and on notice to you, to increase the Brand Promotion Fee, provided that the Brand Promotion Fee shall not exceed 4.5% of your Hotel's Gross Rooms Revenue.

  • F. Third-Party Fees. We periodically may require you to pay us fees due from you to third parties, which we will collect on behalf of such third parties and remit to such third parties.
  • G. Property Improvement Plans Fees. In connection with our inspections of your Hotel and issuance of any PIP, and if applicable, reinspection following a failed PIP inspection, you will pay us our then current PIP fee (currently, up to $5,000, subject to Fee Adjustments (as defined in Schedule 3.H)).
  • H. Booking Fees and Commissions; Other Fees. You are responsible for the payment of all booking fees, reservation fees, and commissions incurred in connection with the operation of your Hotel, whether payable directly to a third-party or advanced by us to such third-party and billed to you. In addition, beginning on the Opening Date, you will pay to us for each month, or as otherwise billed, other fees resulting from the operation of your Hotel and the programs in which you are or will be required to participate as further described in the Brand Manual (such as technology fees and brand conference fees), which may change from time to time. A summary of the currently applicable booking fees, commissions, and other fees is set forth in Schedule 3.H. Such fees are subject to change.

Source: Item 22 — CONTRACTS (FDD pages 79–80)

What This Means (2025 FDD)

According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, franchisees may be required to pay fees to third parties. Sonesta Simply Suites may periodically require franchisees to pay fees due from them to third parties, which Sonesta Simply Suites will collect and remit to those third parties.

Franchisees are responsible for all booking fees, reservation fees, and commissions related to their hotel's operation, whether paid directly to a third party or advanced by Sonesta Simply Suites and then billed to the franchisee. Additionally, franchisees are responsible for the costs and expenses of any additional setup or third-party fees associated with the implementation of services, including the configuration of their private branch exchange, and will pay these costs directly to the applicable vendors.

Sonesta Simply Suites may also require franchisees to hire a professional photographer, approved by them, to conduct a photography session for the hotel, especially after significant renovations or improvements. Unless Sonesta Simply Suites directs the franchisee to pay the third-party vendor directly, these photography session costs will be paid to Sonesta Simply Suites. Understanding these potential third-party fees is crucial for prospective franchisees to accurately assess their potential costs and financial obligations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.