factual

Is the Application Fee for a Springhill Suites By Marriott franchise refundable?

Springhill_Suites_By_Marriott Franchise · 2025 FDD

Answer from 2025 FDD Document

  • ii If the application for a development agreement or a single-unit franchise agreement is approved, the application fee for the hotel will not be refunded.

  • i For single-unit franchise agreements, if Franchisor does not approve the Application for the hotel, it shall have no liability to Applicant for such hotel other than to return the Application Fee for the hotel, less Ten Thousand Dollars ($10,000) and Franchisor's costs.

If at any time prior to execution of the Franchise Agreement, Applicant loses legal control over the site of the hotel, our approval of the Application with respect to the hotel will no longer be effective.

In such event, Franchisor shall have no liability to Applicant and the full Application Fee for the hotel will be retained by Franchisor*,* and Franchisor will withdraw its approval of the hotel.

Source: Item 23 — RECEIPTS (FDD pages 139–206)

What This Means (2025 FDD)

According to Springhill Suites By Marriott's 2025 Franchise Disclosure Document, the application fee's refundability depends on several conditions. Generally, the initial application fee paid by a prospective franchisee is non-refundable once the application is approved. Specifically, if the application for a development agreement or a single-unit franchise agreement is approved, the application fee for the hotel will not be refunded. This means that once Springhill Suites By Marriott gives the green light to your application, you should not expect to get that fee back under normal circumstances.

However, there is an exception where a portion of the application fee may be returned if Springhill Suites By Marriott does not approve the application. In this case, Springhill Suites By Marriott may return the application fee, less $10,000 and their costs. This indicates that while the full fee is typically not refundable upon approval, some portion may be returned if the application is denied, although Springhill Suites By Marriott will deduct $10,000 and any costs they incurred during the review process.

Additionally, if the applicant loses legal control over the site before the franchise agreement is executed, Springhill Suites By Marriott will retain the full application fee and withdraw its approval. This underscores the importance of securing the site before applying and maintaining control of it throughout the application process. The application approval is contingent upon the applicant maintaining legal control over the specified site. If control is lost, the approval becomes ineffective, and the application fee is forfeited. These conditions highlight the financial risks associated with the application process and the importance of meeting all requirements to avoid losing the application fee.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.