What activities are funded by the Program Services Contribution for Springhill Suites By Marriott franchisees?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
Contribution to fund certain mandatory programs and services for System Hotels that Franchisee would otherwise be required to pay for separately ("Program Services"), which include, to the extent described in the Disclosure Document:
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- Marketing Fund Activities;
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- development, modification, maintenance, support, administration and operation of certain mandatory Electronic Systems;
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- development, operation, administration and oversight of certain other mandatory programs and services; and
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- the retention or employment of personnel, consultants and other professionals to assist in the development, implementation and administration of Program Services, including collection and accounting of the Program Services Fund, as well as overhead, other costs incurred in providing Program Services, and the reimbursement of capital invested in the development of such Program Services, together with costs incurred by Franchisor to finance such capital.
Franchisor may modify Program Services from time to time. Unless otherwise determined by Franchisor, Program Services do not include services or costs relating to the purchase, installation or deployment of, or training for, any Electronic System.
Source: Item 23 — RECEIPTS (FDD pages 139–206)
What This Means (2025 FDD)
According to the 2025 Springhill Suites By Marriott Franchise Disclosure Document, the Program Services Contribution funds mandatory programs and services for System Hotels that franchisees would otherwise have to pay for separately. These Program Services include marketing fund activities, the development, modification, maintenance, support, administration, and operation of certain mandatory electronic systems.
Additionally, the Program Services Contribution covers the development, operation, administration, and oversight of other mandatory programs and services. It also funds the retention or employment of personnel, consultants, and other professionals who assist in the development, implementation, and administration of Program Services. This includes the collection and accounting of the Program Services Fund, overhead, other costs incurred in providing Program Services, and the reimbursement of capital invested in the development of such Program Services, along with costs incurred by Springhill Suites By Marriott to finance such capital.
Springhill Suites By Marriott retains the right to modify these Program Services from time to time. Unless otherwise specified by Springhill Suites By Marriott, Program Services do not include services or costs related to the purchase, installation, deployment, or training for any Electronic System. Franchisees should be aware that these services and costs are separate from the Program Services Contribution.