Does the Springhill Suites By Marriott agreement create an agency relationship between Marriott and the franchisee?

According to the 2025 Springhill Suites By Marriott Franchise Disclosure Document, the franchise agreement explicitly states that it does not create an agency relationship between Marriott and the franchisee. Instead, the agreement establishes both parties as independent contractors. This means that neither Marriott nor the franchisee can act as the legal agent of the other.

This distinction is important because it clarifies the legal and financial responsibilities of each party. As independent contractors, franchisees are responsible for their own business operations, including hiring, training, and managing employees, and are also responsible for their own debts and obligations. Marriott's role is primarily to provide the brand name, system standards, and support services outlined in the franchise agreement.

However, the FDD also indicates that Marriott may act on the franchisee's behalf in providing shared services, such as booking reservations and arranging group sales. In these specific instances, the franchisee consigns hotel inventory to Marriott but retains the risk of loss for unsold or cheaply sold inventory. This limited authorization does not negate the overall independent contractor relationship but rather defines the scope of Marriott's authorized actions when providing specific shared services.

Prospective franchisees should understand the implications of this independent contractor relationship, particularly in terms of liability, control over day-to-day operations, and responsibility for financial outcomes. While Marriott provides support and resources, the ultimate success of the Springhill Suites By Marriott hotel depends on the franchisee's ability to manage and operate the business effectively.