Can Springhill Suites By Marriott change the method of funding Program Services?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Permitted Changes. Franchisor may at any time: (i) change the method of funding Program Services (including by establishing methods of funding Program Services other than by the Program Services Contribution); (ii) change the programs and services covered by the Program Services Contribution; (iii) change the amount of the Program Services Contribution or the method of calculation of the Program Services Contribution; (iv) merge or operate the Program Services Fund together with program services funds used to benefit other Franchisor Products; or (v) discontinue the use of the Program Services Contribution to fund any one or all mandatory programs or services for System Hotels, and Franchisee will be bound by any such changes.
- D. Benefits. Franchisor may use the Program Services Fund to cover the costs of Program Services for System Hotels as a whole, groups of System Hotels, and other Franchisor Products. Franchisor has no obligation to ensure that any particular System Hotel, including the Hotel, benefits from Program Services on a pro-rata or other basis or that the Hotel will benefit from Program Services proportionate to the Program Services Contribution paid by Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 139–206)
What This Means (2025 FDD)
According to Springhill Suites By Marriott's 2025 Franchise Disclosure Document, Springhill Suites By Marriott has the ability to change how Program Services are funded. Program Services are contributions made by the franchisee to fund mandatory programs.
Springhill Suites By Marriott can change the method of funding Program Services, including establishing methods other than the Program Services Contribution. They can also change the programs and services covered by the Program Services Contribution, the amount or calculation method of the contribution, and merge the Program Services Fund with funds benefiting other franchisor products. Springhill Suites By Marriott can also discontinue using the Program Services Contribution to fund mandatory programs.
These changes are binding on the franchisee. Springhill Suites By Marriott can use the Program Services Fund to cover costs for all System Hotels, groups of hotels, and other franchisor products. There is no obligation to ensure that any particular hotel benefits from Program Services on a pro-rata basis or in proportion to the franchisee's contribution. This means that while franchisees are required to contribute to the Program Services Fund, there is no guarantee that their specific hotel will directly benefit from those services.
This flexibility allows Springhill Suites By Marriott to adapt its strategies and resource allocation based on the needs of the entire system, but it also introduces a level of uncertainty for franchisees regarding the direct benefits they will receive from their contributions. Prospective franchisees should consider this when evaluating the potential return on investment and the overall value proposition of the franchise.