Is Sonesta Simply Suites required to provide notice before increasing the Brand Promotion Fee?

According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, Sonesta Simply Suites franchisees may receive a 30-day notice regarding changes to Brand Promotion Fees. Specifically, Sonesta Simply Suites and its affiliates have the option to defer or reduce Brand Promotion Fees payable by a franchisee. They can also reduce or suspend Brand Promotion Fee payments and the programs they fund for any period, and even terminate (or reinstate) these programs, provided they give the franchisee 30 days' prior notice.

This indicates that while the Brand Promotion Fee itself might not be unilaterally increased without notice, Sonesta Simply Suites retains considerable flexibility in managing these fees and the associated programs. They can adjust the fees, suspend them entirely, or even terminate the programs, as long as they provide the franchisee with 30 days' notice before making such changes.

For a prospective franchisee, this means that the Brand Promotion Fee is not necessarily a fixed cost. It could fluctuate or even be temporarily suspended based on Sonesta Simply Suites's strategic decisions. It also highlights the importance of understanding the terms and conditions under which these fees can be modified, suspended, or terminated, as outlined in the Franchise Agreement and Brand Manual. Franchisees should also inquire about the historical frequency and magnitude of changes to the Brand Promotion Fee to better anticipate potential future adjustments.