About MOD A Sonesta Collection Franchise
MOD A Sonesta Collection is a boutique hotel franchise within the Sonesta International Hotels Corporation family.
The brand targets the lifestyle hotel segment, offering guests a distinctive, design forward lodging experience that blends local character with modern amenities.
Since launching its franchise program in 2023, MOD has been positioning itself as a stylish option for travelers seeking personality driven hotel stays.
MOD A Sonesta Collection Franchise Cost & Fees
Minimum Investment
$8.2M
Average Investment
$50.5M
Maximum Investment
$92.8M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $75,000 to $125,000 | 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 (can increase up to 3.5%) | National brand fund |
| Total Investment Range | $8,234,250 – $92,756,986 | Includes build-out, inventory, working capital |
The investment range of $8.2M–$92.8M 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 (can 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 | $5,000 |
| PIP Reinspection Fee (Note 10) | $0 | $5,000 |
| 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) | $2,500,000 | $75,000,000 |
| Permits and Licenses (Note 16) | $50,000 | $750,000 |
| Furniture, Fixtures, and Equipment (Note 17) | $4,500,000 | $8,750,000 |
| Operating Supplies and Equipment (Note 18) | $75,000 | $2,500,000 |
| Contingences (Note 19) | $280,000 | $3,000,000 |
| Lender Comfort Letter Fee (Note 20) | $2,000 | $2,000 |
| Initial Operations, Pre-Opening Expenses, Marketing and Advertising Expenses (Note 21) | $50,000 | $200,000 |
| Signage (Note 22) | $25,000 | $125,000 |
| Insurance (Note 23) | $4,000 | $506,786 |
| 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, travel expenses, room and board, and compensation of our employees |
| 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 |
| 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 | Currently, $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 ($695 per additional attendee) |
| Ongoing Training Fees | In-person/on-site: $2,000/day, plus reimbursement of 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 | Currently, the 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 (Case by case basis as incurred) |
| PIP Fee (additional) | $5,000 per PIP |
| PIP Reinspection Fee (additional) | $5,000 per occurrence |
| Photography Expenses (additional) | Up to $5,000 |
| Custom Architecture & Design Review (additional) | Up to $25,000 |
| Default Remedies | Reimbursement for all our costs and expenses we incur to remedy your default. |
| Lost Revenue Damages | Calculated formula based on 36 months or remaining term, Royalty and Brand Promotion Fund percentages, and average monthly Gross Rooms Revenue |
| Pre-Opening Damages | $3,600 per Guest Room |
| Unauthorized Opening Damages | $5,000 per day, plus our costs, including attorneys’ fees |
| 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 per each occurrence for paper check. 3% processing fee for credit card payment. |
| Guest Room Addition Fee | The 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 varies. |
| Classroom Training | 0 |
| On-the-Job Training | 16 – 30 |
| Training Location | Virtual or on-site |
| Additional Training | Franchisees may request additional training if the Hotel Representative does not feel sufficiently trained, provided at current fees. Ongoing training may be required for Hotel Representatives and employees, conducted in-person/on-site or virtually ad hoc, with associated fees and travel reimbursements. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | Franchisees receive a non-exclusive license to operate Brand Hotels at a specified location. The franchisor and its affiliates retain the right to establish and operate other Brand Hotels, Network Hotels, or similar businesses anywhere in the world, including in the franchisee's area, and may compete with the franchisee. |
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 | Timely notice of election to renew, substantial compliance with the Franchise Agreement, no more than four default notices, full compliance with Brand Standards, maintenance of possession, remodeling/expansion to current Brand Standards, transition to a different brand concept if required, correction of deficiencies, signing of current franchise agreement and ancillary agreements, payment of renewal fee, and signing a general release. |
| Transfer Fee | The then-current Initial Fee |
| Transfer Conditions | Payment of all outstanding fees and reports, no violations of the Franchise Agreement within 60 days prior to request, transferee not having interest in a Competitive Business, provision of all requested information, transferee completes training, landlord consent (if applicable), transferee agrees to a PIP and completes renovation work within 120 days, transferee signs current franchise agreement, transferee meets qualifications, payment of transfer fee, and transferor signs a general release. |
| Termination for Cause | Franchisor may terminate with advance notice for uncured Event of Default (e.g., failure to comply with Brand Standards, misrepresentations). Immediate termination can occur for repeated noncompliance, failure to pay amounts due, bankruptcy, failure to obtain/lose possession of hotel, failure to complete construction/renovation, failure to open by Opening Date, abandonment of hotel operations, contesting Marks, dishonest conduct, unauthorized use of Confidential Information, failure to pay taxes, becoming a Competitive Business, unauthorized transfer, failure to maintain insurance, or violation of law. |
| Non-Compete Period | During the Term |
| Non-Compete Details | Neither franchisee nor its owners or immediate family members may have a direct or indirect ownership interest in, perform services for, or appropriate the Franchise System or Brand Standards for any Competitive Business, wherever located or operating. Equity ownership of less than 5% in a publicly traded Competitive Business is an exception. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisees are not required to participate personally in the direct operation of the Hotel, though it is recommended. The Hotel must be managed by a full-time General Manager who meets franchisor qualifications and completes initial training. Franchisees may engage an approved Management Company, which must execute a joinder agreement and be jointly and severally liable for obligations under the Franchise Agreement. |
| Required Suppliers | Franchisor designates and approves all vendors and suppliers for developing, operating, and promoting the Hotel. Signage must be purchased from an Approved Supplier. Some FF&E, OS&E, and other operating supplies (e.g., food products) must be purchased from Approved Suppliers, sometimes only one. Franchisees must use the designated booking engine. |
| Supply Restrictions | Franchisor may designate sole or limited approved suppliers, and items from these suppliers may be more expensive. Franchisees must use the designated booking engine and may not use any other. Franchisor may require purchases through a third-party online procurement platform. |
| Franchisor Revenue from Suppliers | In 2022, RLHC received $5,075 from vendors based on purchases by all Network Hotels. SRLHF derived $11,781,850 (29.1% of its revenue) from purchases of goods and services by franchisees and licensees of all Network Brands. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor may offer a 'Development Incentive' as a financial contribution to assist with hotel development or conversion, typically ranging from $3,000 to $6,000 per Guest Room. This incentive is disbursed after the hotel opens and is forgiven annually over the term of the Franchise Agreement, unless an Acceleration Event occurs. The franchisor does not offer or guarantee other financing arrangements. |
MOD A Sonesta Collection Franchise Earnings — Item 19
MOD 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.
MOD 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.
MOD A Sonesta Collection Litigation & Risk Flags
2 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.
MOD A Sonesta Collection System Growth
Total Units
0
Franchised
0
Company-Owned
0
MOD A Sonesta Collection currently operates 0 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
$54.0M
Net Income
$-3,186,000
Total Assets
$95.8M
Audited by Deloitte & Touche LLP for year ending December 31.
MOD A Sonesta Collection Franchise — FAQ
The total investment to open a MOD A Sonesta Collection franchise ranges from $8,234,250 to $92,756,986, per their Franchise Disclosure Document. This includes the initial franchise fee of $75,000 to $125,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
MOD A Sonesta Collection charges a royalty fee of 5% of Gross Rooms Revenue of gross sales, plus a 2.5% of Gross Rooms Revenue (can increase up to 3.5%) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the MOD 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 MOD A Sonesta Collection to ensure you have the most up-to-date version.
MOD 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.
MOD A Sonesta Collection has been franchising since 2023. The FDD shows an investment range of $8,234,250-$92,756,986, a 5% of Gross Rooms Revenue royalty, and no Item 19 earnings disclosure. There are 2 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 $75,000 to $125,000 and the total investment ranges from $8,234,250 to $92,756,986 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 MOD 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 MOD A Sonesta Collection or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com