Can Springhill Suites By Marriott or its affiliates develop hotels adjacent to a franchisee's hotel?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
THE RHODE ISLAND FRANCHISE INVESTMENT ACT APPLICABLE TO THE FRANCHISE DISCLOSURE DOCUMENT
TERRITORY
Your franchise agreement will permit you to operate one hotel of a specific size at a specific site selected by you and approved by us. You will not receive the right to acquire additional franchises at any location. We and our affiliates have and retain the rights to, or license or franchise others to, develop, promote, market, own, operate, lease, license, franchise, and/or manage other hotels, lodging products or concepts or other business operations (including SpringHill Suites by Marriott hotels, other Company Brand Businesses, and lodging products operating under the MVW Licensed Brands) at any location, including locations adjacent or proximate to your hotel. These business operations may compete directly with, and adversely financially impact the operation of, your hotel.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we or our affiliates own, lease, manage, license, or franchise, or from other channels of distribution or competitive brands that we or our affiliates control.
You may not be granted a territory, but if you are, it will be non-exclusive. Generally, a territory: (i) will apply to SpringHill Suites by Marriott hotels only; (ii) will apply for a duration less than the entire term of the franchise agreement;
Source: Item 12 — TERRITORY (FDD pages 100–102)
What This Means (2025 FDD)
According to Springhill Suites By Marriott's 2025 Franchise Disclosure Document, franchisees may face competition from the franchisor and its affiliates. Springhill Suites By Marriott and its affiliates retain the rights to develop, promote, market, own, operate, lease, license, franchise, and/or manage other hotels, lodging products, concepts, or other business operations, including SpringHill Suites by Marriott hotels, other Company Brand Businesses, and lodging products operating under the MVW Licensed Brands at any location. This includes locations adjacent or proximate to a franchisee's hotel.
This means that Springhill Suites By Marriott franchisees do not receive an exclusive territory and could face direct competition from other Springhill Suites By Marriott hotels or other lodging concepts owned, operated, or franchised by Springhill Suites By Marriott or its affiliates, even next door to their franchised location. The FDD states explicitly that these business operations may compete directly with, and adversely financially impact the operation of, a franchisee's hotel.
Springhill Suites By Marriott does provide notice to Company Brand Hotel franchisees and owners of certain new development and conversion projects for Company Brand Hotels as set forth in their Growth Administration Guidelines, which are available upon request. These guidelines provide notified owners and franchisees with an opportunity to respond in writing regarding any concerns they may have with respect to the proposed project, as well as an opportunity, if certain conditions are met, to request an independent impact study. However, these guidelines are subject to change or elimination.