What is the Transfer Fee for a Sonesta Simply Suites franchise?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS (Note 1) |
|---|---|---|---|
| Transfer Fee | The Initial Fee | Upon or before execution of the Franchise Agreement by transferee | If there is a proposed transfer and the proposed transferee desires to continue to operate your Hotel as a Brand Hotel, the proposed transferee must submit an application for a new franchise agreement. You or the transferee will pay the transfer fee. No transfer fee will be due if the transfer is to a spouse following the spouse's death. |
Source: Item 6 — OTHER FEES (FDD pages 25–36)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, the transfer fee is equivalent to the initial franchise fee. This fee is payable upon or before the execution of the Franchise Agreement by the new transferee. Therefore, if a franchisee decides to sell their Sonesta Simply Suites franchise to a new owner, that new owner will generally need to pay a transfer fee equal to the initial franchise fee at the time of transfer.
However, there is an exception to this rule. The FDD states that no transfer fee will be due if the transfer is to a spouse following the franchisee's death. This provides a specific instance where the standard transfer fee is waived, offering some financial relief to the surviving spouse.
It is important for prospective franchisees to understand this fee, as it can represent a significant cost when selling the franchise. The initial fee can vary, so franchisees should consult their Franchise Agreement and the most current FDD to determine the exact amount of the transfer fee at the time of a potential sale. This fee is in place to cover Sonesta Simply Suites' costs associated with approving the transfer and onboarding a new franchisee.