What do the costs and expenses of a Program for Springhill Suites By Marriott include, without limitation?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
- b. Costs and expenses of a Program shall include, without limitation, wages, benefits, and bonuses of the Program associates, as well as controllables such as startup expenses, rent, office supplies, postage, telephone expenses, travel expenses, training, entertainment, and depreciation of capital expenditures such as computer systems, and office furniture and facilities (the "Operating Costs"). The Hotel's share of the costs of the Programs, including but not limited to the Operating Costs, will be allocated and invoiced to Franchisee each month.
Source: Item 17 — , "Renewal, Termination, Transfer, and Dispute Resolution," is amended by the addition of the following paragraph(s) at the conclusion of the Item: (FDD pages 285–553)
What This Means (2025 FDD)
According to the 2025 Springhill Suites By Marriott Franchise Disclosure Document, the costs and expenses of a Program include, but are not limited to, several specific items. These include the wages, benefits, and bonuses of Program associates.
Additionally, the costs encompass controllables such as startup expenses, rent, office supplies, postage, and telephone expenses. Travel expenses, training, and entertainment are also included in the costs. Furthermore, the expenses account for the depreciation of capital expenditures related to computer systems, office furniture, and facilities, which are categorized as "Operating Costs."
The franchisee is responsible for paying their share of these Program costs, including the Operating Costs, which will be allocated and invoiced to them each month. Franchisees must adhere to the payment terms outlined in each invoice, Shared Service Agreement, and the Franchise Agreement.