Under what condition is the Sonesta Simply Suites transfer fee waived?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
under its terms. |
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS (Note 1) |
|---|---|---|---|
| Reactivation Fee | The lesser of 25% of past due balances or $2,000 | Prior to reactivation | If we have suspended your Hotel from the Reservation System because of a default under your Franchise Agreement, and you have cured the default, we may require you to pay this fee as a condition of reactivation. |
| Insurance | $500 per month, plus reimbursement for all premiums, costs, and expenses we incur | As billed | If you do not procure or maintain the required insurance or policy limits described in the Brand Manual, in addition to paying us a monthly fee, we may (but are not obligated to) procure and maintain insurance for you without first giving you notice, and you will be required to reimburse us. The monthly fee is subject to change. See Item 8 and Note 9. |
| Taxes | Varies | Upon demand | If any sales, use, gross receipts, or similar tax is imposed on us for the receipt of any payments you are required to make to us under the Franchise Agreement, then you also must pay this tax to us. |
| Indemnification | Varies | Case by case basis as incurred | You must reimburse us if we are held liable for claims arising from the development or operation of your Hotel, the business you conduct under the Franchise Agreement, any default under your Franchise Agreement, and/or your employment practices or that are instituted by your employees, including attorneys' fees and court costs we reasonably incur to protect us, our parent, subsidiaries, or affiliates. |
| 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 transfe |
Source: Item 6 — OTHER FEES (FDD pages 25–36)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, a transfer fee is typically required when a franchise is transferred to a new owner who intends to continue operating the hotel under the Sonesta Simply Suites brand. The amount of the transfer fee is equal to the initial franchise fee. However, the transfer fee is waived specifically if the transfer is to a spouse following the franchisee's death.
This waiver provides a significant benefit to the franchisee's family in the event of their death, as it allows the surviving spouse to take over the franchise without incurring an additional fee. This can help ensure the continuity of the business and provide financial security for the family during a difficult time. Without this clause, the spouse would need to pay the initial fee to continue operations.
It is important to note that this waiver only applies to transfers to a spouse following death. Any other type of transfer, such as a sale to a third party or a transfer to another family member, would still be subject to the standard transfer fee. Prospective franchisees should consider this provision as a valuable safeguard for their families and should discuss any specific concerns or questions with the franchisor before signing the Franchise Agreement.