What is the annual interest rate charged by Springhill Suites By Marriott on late payments?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.6 Interest on Late Payments. Franchisee will pay interest on any amount that is not paid when due. Interest will accrue at a rate of 18% per annum (or, if less, the maximum interest rate permitted by Applicable Law) from the date such overdue amount was due until paid. Franchisor's right to receive interest is in addition to any other remedies Franchisor may have.
Source: Item 23 — RECEIPTS (FDD pages 139–206)
What This Means (2025 FDD)
According to the 2025 Springhill Suites By Marriott Franchise Disclosure Document, franchisees will incur interest on any overdue amounts. The interest rate is set at 18% per annum, but if applicable law mandates a lower maximum interest rate, that lower rate will be applied instead. This interest accrues from the original due date until the payment is made in full.
This late payment interest charge is in addition to any other remedies that Springhill Suites By Marriott may pursue for the overdue payment. This could include late fees, suspension of services, or even termination of the franchise agreement in cases of persistent or significant payment defaults.
It is important for prospective Springhill Suites By Marriott franchisees to understand this policy and ensure timely payments to avoid these interest charges and potential further repercussions. Franchisees should factor in these potential costs when managing their finances and cash flow.