Under what condition is the PIP Fee required for a Sonesta Simply Suites franchise?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
nistration fee ranging from $1,000 to $2,500.
If you are converting an existing hotel into a Brand Hotel, prior to the execution of the Franchise Agreement, you must pay us up to $5,000 ("PIP Fee") to cover our costs to perform an initial inspection of your property, prepare a property improvement plan ("PIP"), and verify completion of the PIP. The PIP will set forth a list of property improvements that you must make to convert your property to a Brand Hotel under the Brand Standards. The PIP Fee is nonrefundable. If we are required to reinspect your Hotel to ensure you have complied with the PIP, you must pay us a PIP reinspection fee of up to $5,000. These fees w
Source: Item 5 — INITIAL FEES (FDD pages 23–25)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, the PIP Fee, which can be up to $5,000, is required if you are converting an existing hotel into a Sonesta Simply Suites branded hotel. This fee covers the cost for Sonesta Simply Suites to perform an initial inspection of the property, prepare a Property Improvement Plan (PIP), and verify completion of the PIP. The PIP outlines the property improvements necessary to meet Sonesta Simply Suites' brand standards.
The PIP Fee is nonrefundable and must be paid prior to the execution of the Franchise Agreement. Additionally, if a reinspection of the hotel is required to ensure compliance with the PIP, Sonesta Simply Suites charges a PIP reinspection fee of up to $5,000, which is also non-refundable.
This fee is specific to conversions of existing hotels. New construction or acquisitions of existing Sonesta Simply Suites hotels do not require this particular fee, although other fees may apply. It is important for prospective franchisees converting an existing hotel to factor in this potential cost, as well as the costs associated with the property improvements outlined in the PIP, to accurately assess the financial investment required.