When must the Room Addition Fee be paid to Sonesta Simply Suites?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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acknowledge that this Section 3.I is not our agreement to accept any payments after they are due or our commitment to extend credit to, or otherwise finance your operation of, your Hotel.
- J. Room Addition Fee. If you add or construct additional Guest Rooms at your Hotel at any time after you sign this Agreement, you will pay us a nonrefundable fee equal to the greater of $400 per additional Guest Room or $5,000 (the "Room Addition Fee"). You must pay the Room Addition Fee to us when you submit an application for our approval to add any Guest Rooms to your Hotel, and you must submit that application to us before you enter into any agreement to add a
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, a franchisee must pay the Room Addition Fee when submitting an application for approval to add guest rooms to their hotel. This application must be submitted before entering into any agreement to add guest rooms.
The Room Addition Fee is nonrefundable and is equal to the greater of $400 per additional guest room or $5,000. Sonesta Simply Suites may also require the franchisee to modernize, rehabilitate, or upgrade the hotel as a condition of approving the application to add guest rooms.
This means that a Sonesta Simply Suites franchisee needs to budget for this fee and potential upgrade costs well in advance of any planned expansion. They must also factor in the time required for the application and approval process before committing to any construction agreements. Failing to adhere to this process could result in the denial of the application or a breach of the franchise agreement.