About Classico A Sonesta Collection Franchise
Classico, A Sonesta Collection is a hotel franchise brand under parent company Sonesta Holdco Corporation, offering franchise opportunities since 2023.
The brand targets the upper midscale to upscale hospitality segment, providing guests with a refined, comfortable stay that blends classic elegance with modern amenities.
Each property maintains high standards for guest rooms, common areas, and service quality.
Classico A Sonesta Collection Franchise Cost & Fees
Minimum Investment
$9.0M
Average Investment
$52.2M
Maximum Investment
$95.4M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | greater of $75,000 or $500 per Guest Room | One-time payment upon signing |
| Royalty Fee | 5% of Gross Rooms Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2.5% of Gross Rooms Revenue (may increase up to 3.5%) | National brand fund |
| Total Investment Range | $8,975,750 – $95,375,876 | Includes build-out, inventory, working capital |
The investment range of $9.0M–$95.4M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Rooms Revenue) and marketing fee (2.5% of Gross Rooms Revenue (may increase up to 3.5%)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Fee (Note 2) | $125,000 | $125,000 |
| Onboarding Administration Fee (Note 3) | $5,000 | $5,000 |
| Revenue Management System Installation (Note 4) | $1,250 | $10,000 |
| Revenue Management System Training (Note 4) | $0 | $8,950 |
| IT Implementation Services Fee (Note 5) | $0 | $52,000 |
| Property Management System Hardware & Installation Fee (Note 6) | $25,000 | $40,000 |
| Ancillary System Hardware, Network, Administration (Note 7) | $50,000 | $150,000 |
| Sales Technology Platform Implementation Costs (Note 8) | $0 | $20,000 |
| PIP Fee (Note 9) | $5,000 | $0 |
| PIP Reinspection Fee (Note 10) | $0 | $0 |
| Custom Architecture & Design Review (Note 11) | $0 | $25,000 |
| Initial Brand Training Fee and Reimbursement of Expenses (Note 12) | $5,000 | $7,500 |
| Initial Training Expenses (Note 13) | $1,000 | $2,000 |
| Real Estate, Legal and Title Expenses (Note 14) | $0 | $0 |
| Construction and Improvement Costs (Note 15) | $2,750,000 | $75,000,000 |
| Permits and Licenses (Note 16) | $50,000 | $900,000 |
| Furniture, Fixtures, and Equipment (Note 17) | $4,950,000 | $10,500,000 |
| Operating Supplies and Equipment (Note 18) | $75,000 | $3,125,000 |
| Contingences (Note 19) | $308,000 | $3,000,000 |
| Lender Comfort Letter Fee (Note 20) | $2,000 | $2,000 |
| Initial Operations, Pre-Opening Expenses, Marketing and Advertising Expenses (Note 21) | $62,500 | $250,000 |
| Signage (Note 22) | $25,000 | $156,250 |
| Insurance (Note 23) | $5,000 | $519,426 |
| Branded Landing Page Installation (Note 24) | $1,000 | $10,000 |
| Guest Wi-Fi and In-Room Entertainment Installation (Note 25) | $0 | $259,750 |
| Photography Expenses (Note 26) | $5,000 | $5,000 |
| Construction Start Date Extension Fee (Note 27) | $0 | $5,000 |
| Additional Funds (during the first 3 months of operation) (Note 28) | $525,000 | $1,250,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | The then-current Initial Fee |
| Renewal Fee | The then-current Initial Fee |
| Technology Fee | $9.00 per Guest Room per month |
| Audit Fee | Cost of audit, including attorneys and independent accountants charges, and travel, room, board, and compensation of our employees (if underreported by 2% or more or due to failure to provide reports) |
| Loyalty Program | 4.5% of Qualified Room Revenue |
| Reservation Fees | $1.75 to $9.50 per reservation |
| Travel Agency Commissions | 10% of TAC Consumed Revenue |
| Travel Agency Commission Settlement Fee | Currently up to $0.85 per transaction |
| Meetings and Events Commission | 5% on consumed master folio per group |
| Travel Management Company (“TMC”) and Consortia Fees | $3.50 per room night (in addition to standard travel agency commission) |
| Corporate Account Support Subscription and Services | $112.91 to $183.33 per month |
| Guest Relations Program | $25 to $125 per issue |
| Operations Insights | $125 per month |
| Online Review Response Fee | $39 to $150 per response |
| Quality Assurance Annual Inspection | $2,000 once per year, plus appropriate and customary travel, lodging, and meals. Re-inspection: $4,000 plus appropriate and customary travel, lodging, and meals. |
| Quality Assurance and Guest Satisfaction Deficiency Remediation | Up to $5,000 per occurrence, plus appropriate and customary travel, lodging, and meals |
| Brand Conference Fee | Currently, $100 per month (for one person), additional attendees $695 per attendee |
| Initial Brand Training Fee | $5,000, plus reimbursement of our travel costs and expenses (up to $2,500) |
| Ongoing Training Fees | In-person/on-site: $2,000/day, plus reimbursement of our travel costs and expenses. Virtual Ad-Hoc: $200 per hour of training. |
| Non-Compliance Fee | 1% of Gross Rooms Revenue per month of non-compliance |
| Late Payment Charge | Lesser of 1.5% per month or the maximum rate permitted by applicable law |
| Reactivation Fee | Lesser of 25% of past due balances or $2,000 |
| Insurance | Currently, $500 per month, plus reimbursement for all premiums, costs, and expenses we incur |
| Taxes | Varies |
| Indemnification | Varies |
| Administrative Fee for Lender Comfort or Other Requests | $2,000 per lender comfort letter and up to $5,000 per other request, and any additional costs we may incur |
| PIP Fee | $5,000 per PIP |
| PIP Reinspection Fee | $5,000 per occurrence |
| Photography Expenses | Up to $5,000 |
| Custom Architecture & Design Review | Up to $25,000 |
| Default Remedies | Reimbursement for all our costs and expenses we incur to remedy your default |
| Lost Revenue Damages | Calculated as: (lesser of 36 or remaining months) * (Royalty + BPF %) * avg monthly Gross Rooms Revenue |
| Pre-Opening Damages | $3,600 per Guest Room |
| Unauthorized Opening Damages | $5,000 per day, plus our costs |
| Failure to De-Identify Damages | $500 per day, plus our expenses |
| Revenue Management For Hire | $995 to $2,500 per month |
| Revenue Management System | $9.53 per Guest Room per month |
| Market Intelligence | $250 per month |
| American Hotel & Lodging Association Fee (“AHLA”) | $4.50 per room per year |
| Reservation System Maintenance Fee: Future Rate and Inventory | $250 (1st occurrence), $500 (2nd occurrence), $1,000 (per occurrence thereafter) |
| Reservation System Maintenance Fee: Central Reservation System Services | $150 per occurrence |
| Alternative Payment Fee | $25 processing fee (paper check), 3% processing fee (credit card) |
| Guest Room Addition Fee | Greater of $500 per additional Guest Room or $5,000 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Up to 4 days for initial training; ongoing training up to 5 days per calendar year. |
| Classroom Training | 0 |
| On-the-Job Training | 16 – 30 |
| Training Location | Virtual or on-site (at franchisor's election, or another designated location) |
| Additional Training | The franchisor may require franchisees, Hotel Representatives, and experienced employees to attend various ongoing training courses, provided virtually or in-person/on-site, at designated times and locations. Revenue Manager Certification Training is also required if not participating in the RMFH program. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | Franchisees receive a non-exclusive license to operate a Brand Hotel at a specified location. There is no exclusive territory, and franchisees may face competition from other franchisees, company-owned outlets, or other distribution channels and competitive brands controlled by the franchisor or its affiliates. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years |
| Renewal Term | One additional 20-year term |
| Renewal Fee | The then-current Initial Fee |
| Renewal Conditions | To renew, the franchisee must give timely notice, have substantially complied with the agreement (no more than three default notices in the term), be in full compliance at renewal, maintain possession of the premises, remodel as necessary to meet current Brand Standards, potentially transition to a different brand concept, correct any deficiencies, sign the then-current franchise agreement and ancillary agreements, pay the renewal fee, and sign a general release. |
| Transfer Fee | The then-current Initial Fee |
| Transfer Conditions | Transfers require prior written consent from the franchisor. Conditions include: all fees paid, no agreement violations, transferee not a competitor, provision of all requested information, transferee completes required training, landlord consent (if applicable), transferee agrees to a PIP and completes renovation work, transferee signs the then-current franchise agreement, transferee meets new franchisee qualifications, payment of the transfer fee, and the franchisee and owners sign a general release. |
| Termination for Cause | The franchisor may terminate the agreement for various curable and non-curable defaults. Curable defaults typically have a 30-day cure period. Non-curable defaults include failure to pay amounts due (within 10 days of notice), bankruptcy, loss of possession of the hotel, failure to commence/complete construction/renovation, failure to open by the Opening Date, failure to identify as a Brand Hotel, contesting Marks ownership, dishonest behavior, unauthorized use of confidential information, becoming a Competitive Business, unauthorized transfer, and repeated defaults. |
| Non-Compete Period | During the term of the franchise |
| Non-Compete Details | During the term, the franchisee, its owners, and immediate family members may not have any direct or indirect ownership interest (exceeding 5% in publicly traded companies) in a Competitive Business, perform services for a Competitive Business, or use the Franchise System or Brand Standards for any other business. A 'Competitive Business' is defined as any entity that owns, franchises, or provides services to a hotel brand that competes with Brand Hotels or Network Hotels. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | The franchisee is not required to personally participate in the direct operation of the hotel, though it is recommended. The hotel must be managed by a full-time General Manager who meets the franchisor's qualifications. Franchisees may engage an approved management company, which must sign a joinder agreement and is jointly and severally liable for obligations. |
| Required Suppliers | The franchisor reserves the right to approve or designate all vendors and suppliers of products and services, including sole suppliers. Specific items subject to approval include signage, certain FF&E, OS&E, food products, and the booking engine. |
| Supply Restrictions | Franchisees must strictly comply with all Brand Standards and use only products, supplies, equipment, furnishings, and services approved by the franchisor for appearance, function, and performance. This includes FF&E, OS&E, décor, layout, signage, advertising materials, uniforms, logoed items, guest room amenities, consumable inventories, food and beverage services, Wi-Fi, in-room entertainment, Computer System components (CRS, PMS, RMS), insurance, telephone, and security items. |
| Franchisor Revenue from Suppliers | The franchisor's affiliates may receive volume-based allowances from Approved Suppliers, generally ranging from 1% to 4% of net or gross sales on items like FF&E, operating/maintenance equipment and supplies, merchant processing, services, and food and beverage products. In 2022, RLHC received $5,075 from vendors, and SRLHF derived $11,781,850 (29.1% of its revenue) from purchases by franchisees and licensees of all Network Brands. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor may offer financial incentives (between $4,000 and $9,000 per Guest Room) for new Classico brand hotels to assist with development or conversion. These incentives are provided via a development incentive promissory note and do not require repayment unless the Franchise Agreement is terminated early or a transfer occurs. The repayable amount is reduced annually based on the term of the agreement. |
Classico A Sonesta Collection Franchise Earnings — Item 19
Classico A Sonesta Collection does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Classico A Sonesta Collection does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Classico A Sonesta Collection Litigation & Risk Flags
4 Pending Actions ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Classico A Sonesta Collection System Growth
Total Units
1
Franchised
1
Company-Owned
0
Classico A Sonesta Collection currently operates 1 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 0 | 0 |
| 2021 | 0 | 0 | 0 |
| 2022 | 0 | 0 | 0 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 15 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$40.5M
Net Income
$-3,186,000
Total Assets
$95.8M
Classico A Sonesta Collection Franchise — FAQ
The total investment to open a Classico A Sonesta Collection franchise ranges from $8,975,750 to $95,375,876, per their Franchise Disclosure Document. This includes the initial franchise fee of greater of $75,000 or $500 per Guest Room. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Classico A Sonesta Collection charges a royalty fee of 5% of Gross Rooms Revenue of gross sales, plus a 2.5% of Gross Rooms Revenue (may increase up to 3.5%) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Classico A Sonesta Collection Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Classico A Sonesta Collection to ensure you have the most up-to-date version.
Classico A Sonesta Collection does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Classico A Sonesta Collection has been franchising since 2023. The FDD shows an investment range of $8,975,750-$95,375,876, a 5% of Gross Rooms Revenue royalty, and no Item 19 earnings disclosure. There are 4 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is greater of $75,000 or $500 per Guest Room and the total investment ranges from $8,975,750 to $95,375,876 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Classico A Sonesta Collection and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Classico A Sonesta Collection or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com