What is the standard initial fee for a Sonesta Simply Suites franchise?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
this Item.
INITIAL FEES
Initial Fee
You must pay us an initial fee equal to the greater of $50,000 or $400 per Guest Room (as defined below) (the "Initial Fee") when you sign the Franchise Agreement. The Initial Fee is fully earned and non-refundable and must be paid before we will countersign the Franchise Agreement. During the 2024 fiscal year, we charged a discounted Initial Fee ranging from $25,000 (for a Brand Hotel with fewer than 125 Guest Rooms) to $50,000 (for a Brand Hotel with 134 Guest Rooms).
"Guest Room" means each rentable unit in your Hotel generally used for overnight guest accommodations, the entrance to which is controlled by the same key. Adjacent Guest Rooms with connecting doors that can be rented as separate units are considered separate Guest Rooms. The initial number of approved Guest Rooms will be identif
Source: Item 5 — INITIAL FEES (FDD pages 23–25)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, the initial franchise fee is the greater of $50,000 or $400 per guest room. This fee is required when signing the Franchise Agreement and is non-refundable. The number of approved guest rooms will be listed in Exhibit A of the Franchise Agreement.
During the 2024 fiscal year, Sonesta Simply Suites offered discounted initial fees ranging from $25,000 for hotels with fewer than 125 guest rooms to $50,000 for hotels with 134 guest rooms. This indicates that the initial fee can vary based on factors such as the number of guest rooms, and potentially other considerations at the discretion of Sonesta Simply Suites.
In addition to the initial franchise fee, new Sonesta Simply Suites franchisees can expect other initial fees, such as an onboarding administration fee of $2,500 for newly constructed or converted hotels, or $2,000 for acquiring an existing hotel. There are also fees for property improvement plans (PIP), initial brand training, PMS interface setup, construction start date extensions, lender comfort letter reviews, sales technology platform onboarding, IT system implementation, photography expenses, architecture and design review, and revenue management system installation. These additional fees can range from a few hundred to several thousand dollars each, depending on the specific services and requirements.