Under what conditions is the Reactivation Fee charged to a Sonesta Simply Suites franchisee?
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 t |
Source: Item 6 — OTHER FEES (FDD pages 25–36)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, a Reactivation Fee may be charged if a franchisee's hotel has been suspended from the Reservation System due to a default under the Franchise Agreement. If the franchisee cures the default, Sonesta Simply Suites may require payment of the Reactivation Fee as a condition of restoring access to the Reservation System.
The Reactivation Fee is the lesser of 25% of the past due balances or $2,000. This fee is due prior to the reactivation of the hotel's access to the Reservation System. This means that a franchisee facing suspension needs to be prepared to pay this fee in addition to rectifying the initial default to resume normal operations.
It is important for prospective Sonesta Simply Suites franchisees to understand the circumstances that could lead to suspension from the Reservation System and the associated costs of reactivation. Maintaining compliance with the Franchise Agreement is crucial to avoid such penalties and ensure the continued smooth operation of the hotel. Franchisees should clarify with Sonesta Simply Suites what specific actions constitute a default that could lead to suspension to proactively mitigate these risks.