Who collects the Program Services Contribution for Springhill Suites By Marriott?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
(iv) hotel employee training. Costs paid by the Program Services Contribution include our costs of development, maintenance and support, management, oversight, administration, salaries, and overhead (including collection and accounting). If we provide capital for a project to change or develop new systems covered by the Program Services Contribution, we may recover the capital invested as well as costs incurred by us to finance such invested capital. We may spend all of the contributions in the year collected or carry forward excess contributions into future years. If expenditures exceed amounts collected, we may make loans to cover the shortfalls (and may treat each loan (and any
interest charged thereon) as a receivable to be repaid in subsequent periods). The Program Services Contribution may be combined with the Program Services Contributions for one or more other Company Brands, and all franchisees may not benefit on the same basis from Program Services Contributions. The Program Services Contribution may be merged, modified, or discontinued at any time. We may change the Program Services Contribution amount, or the costs covered by the Program Services Contribution at any time. We are not the trustee of, and have no fiduciary duty to you for, the Program Services Contribution.
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, the franchise collects the Program Services Contribution from franchisees. The Program Services Contribution covers the cost of certain programs, systems, and services, including advertising, sales and marketing, reservation systems, electronic systems, guest satisfaction surveys, and a centralized travel agent commission processing program.
The costs paid by the Program Services Contribution include Springhill Suites By Marriott's costs of development, maintenance and support, management, oversight, administration, salaries, and overhead, including collection and accounting. Springhill Suites By Marriott may spend all of the contributions in the year collected or carry forward excess contributions into future years. If expenditures exceed amounts collected, Springhill Suites By Marriott may make loans to cover the shortfalls and may treat each loan (and any interest charged thereon) as a receivable to be repaid in subsequent periods.
The Program Services Contribution may be combined with the Program Services Contributions for one or more other Company Brands, and all franchisees may not benefit on the same basis from Program Services Contributions. Springhill Suites By Marriott may change the Program Services Contribution amount, or the costs covered by the Program Services Contribution at any time. Springhill Suites By Marriott is not the trustee of, and has no fiduciary duty to franchisees for, the Program Services Contribution.