Who collects the Franchise Fees for Springhill Suites By Marriott?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
mitted.
Pre-Opening Fees
Listed below are certain estimated one-time non-refundable fees and reimbursements (excluding certain travel and related expenses) that you will pay to us on demand to open a SpringHill Suites by Marriott hotel. We may require you to prepay certain of these expenses. If you are acquiring or converting an existing hotel, your pre-opening fees and costs will vary depending upon, among other things, the systems in place and experience of personnel that are retained at the time of acquisition or conversion.
A. Computer Hardware and Software Systems
The amounts payable to us or our approved vendors for pre-opening technology planning and installation services associated with the implementation of the current, approved property management, reservation, yield management, and opportunity management systems generally ranges from approximately $32,300 to $61,700. The current approved property management, reservation, yield management systems will be replaced with new systems to be designated by us. The amount payable to us for pre-opening technology planning and installation services associated with the implementation of the new property management, reservation, and yield management systems, plus the cost of the opportunity management system, are estimated to range from approximately $67,000 to $124,000.
Certain franchisees may be required to commence operating under the current, approved systems and replace them with the new approved systems at a later date. The cost of transitioning from the current approved systems to the new systems are estimated to range from approximately $5,150 to $14,520 per hotel plus $59 to $91 per guestroom at the hotel. The transition process will consist of a series of key milestones that you must complete in a timely manner (approximately 7 milestones). If you fail to timely complete any key milestone in the transition process, we may complete the milestone on behalf of the hotel, at a cost ranging from $7,000 to $20,000 per milestone. Hotels participating in revenue management advisory services must pay an additional $2,700 for revenue management advisory services associated with the transition.
These estimates do not include amounts payable to third parties (either directly or paid to us and remitted to third parties on your behalf) for hardware, software, or installation for the above systems or for other computer systems recommended or required for your hotel or amounts payable to us for other recommended computer systems. The costs for such systems are subject to change. See Item 11 for a detailed description of our required and recommended computer systems. Depending on the number of guestrooms and interfaces at your hotel, your costs may exceed these estimates. Optional hardware or additional services may be available at an additional cost.
B. Pre-Opening Training and Services
The costs for pre-opening training and services provided by us (not including costs discussed elsewhere in this Item 5 or costs incurred when purchasing an existing SpringHill Suites by Marriott hotel, see Section 3 below) generally range from $34,000 to $60,000, are subject to change, and are non-refundable. This amount includes: training on the use of the property management system, management and executive training, pre-opening on-site task force training, virtual training, the opening authorization process, associate orientation materials, pre-opening operations and sales and marketing support, and pre-opening revenue management/reservation system rate loading and consultation, as well as an estimate of the travel, meal, and lodging expenses for our trainers, which you must pay. We used the average travel, meal, and lodging expenses for our trainers last year in the range above. The range above excludes, and you must pay for the cost of, travel, meal, and lodging expenses incurred by you and your designated attendees to complete training programs that are not conducted on site. The total cost of preopening training and services may vary based on the size and location of your hotel, your experience, and the experience of your associates, as determined by us.
Pre-opening training and services costs include the following:
- A team of one to two trainers, as determined by us, will conduct approximately 5 to 14 days of on-site training, along with virtual support to be conducted during the period before and shortly after the opening of the hotel. We estimate that these on-site costs generally will range from $10,000 to $25,000 based on the experience level and prior experience of your associates and the size
of your hotel. You must retain a general manager and sales directors/managers at least six to nine months prior to hotel opening to participate in pre-opening training and to prepare the hotel for opening.
Source: Item 6 — B. Other Fees That May Apply to Your Transaction (FDD pages 32–64)
What This Means (2025 FDD)
According to Springhill Suites By Marriott's 2025 Franchise Disclosure Document, franchisees will pay certain fees directly to Springhill Suites By Marriott. Specifically, the document mentions that pre-opening fees and reimbursements are paid to them on demand to open a SpringHill Suites by Marriott hotel.
Additionally, when converting a hotel to a SpringHill Suites by Marriott, a property improvement plan fee of $12,000 is paid to Springhill Suites By Marriott to review the hotel and determine necessary renovations to meet their standards. If revisions are requested to the PIP prior to its expiration, a fee of $5,000 is paid to Springhill Suites By Marriott to review the proposed changes. To refresh a PIP that is 12 months past its initial issuance date, a fee of $6,000 is paid to Springhill Suites By Marriott. If a PIP is 24 months past its initial issuance date, a fee of $12,000 is paid to Springhill Suites By Marriott for a new PIP.
Furthermore, the FDD states that for pre-opening training and services, the costs generally range from $34,000 to $60,000 and are non-refundable. This amount includes training on the property management system, management and executive training, pre-opening on-site task force training, virtual training, the opening authorization process, associate orientation materials, pre-opening operations and sales and marketing support, and pre-opening revenue management/reservation system rate loading and consultation, as well as an estimate of the travel, meal, and lodging expenses for their trainers, which you must pay. New-to-Marriott franchisee executives must also attend Executive Orientation at least 12 months prior to the hotel's opening date and pay the then-current fee, which is approximately $795 per person. If a franchisee is required to participate in the Franchisee Introduction to Marriott program (FITM), they must pay the then-current FITM enrollment fee, presently $40,000, at least 10 months before the hotel opening deadline. Alternatively, if required to participate in the Franchisee OnBoarding for New Development program (FOND), they must pay the then-current FOND enrollment fee, presently $20,000, at least 10 months before the hotel opening deadline.
However, the FDD also indicates that some fees are paid to other entities. For example, if a franchisee is submitting an application for an existing SpringHill Suites by Marriott hotel or converting a hotel currently managed by Marriott or one of its affiliates, they will be required to pay outside counsel costs directly to the outside counsel prior to closing. Also, franchisees may voluntarily purchase various products and services under arrangements negotiated by Marriott and its subsidiaries.