Can Springhill Suites By Marriott discontinue the Marketing Fund?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
We administer the Marketing Fund for hotels located in the United States and Canada together. We have the right to: (i) merge or operate separate Marketing Funds for hotels located in the United States and Canada; (ii) combine the Marketing Fund with marketing funds in other regions or countries; (iii) add or remove Company Brands from the Marketing Fund; (iv) discontinue the Marketing Fund or Marketing Fund Activities (as defined below); and (v) establish other methods of funding Marketing Fund Activities (Franchise Agreement – Section 3.7.B). We also have the right to pool monies from various Company Brand marketing funds to engage in global, multi-brand marketing activities. Participating Company Brands and Company Brand Hotels may not benefit on a pro-rata basis from such activities. The Marketing Fund is not required to be audited. At your request, we will provide to you an accounting of Marketing Fund revenues and expenditures for any fiscal year if such request is made between 90 and 180 days after the end of such fiscal year (Franchise Agreement – Section 3.7.E).
Source: Item 10 — FINANCING (FDD pages 80–100)
What This Means (2025 FDD)
According to Springhill Suites By Marriott's 2025 Franchise Disclosure Document, Springhill Suites By Marriott has the right to discontinue the Marketing Fund or Marketing Fund Activities. They can also establish other methods of funding Marketing Fund Activities. This gives Springhill Suites By Marriott considerable latitude in how they manage and fund marketing efforts for the brand.
This flexibility allows Springhill Suites By Marriott to adapt its marketing strategies as needed. For example, they could choose to discontinue the traditional Marketing Fund in favor of a new digital marketing approach or a different funding model. They also have the right to pool monies from various Company Brand marketing funds to engage in global, multi-brand marketing activities. Participating Company Brands and Company Brand Hotels may not benefit on a pro-rata basis from such activities.
For a prospective franchisee, this means that the marketing fees they pay might be redirected or used in ways that don't directly benefit their specific location. While all franchisees contribute to the Marketing Fund, the contribution amounts and rates vary. Hotels operated by Springhill Suites By Marriott and its affiliates are generally required to contribute to the Marketing Fund but may not be required to do so on the same basis as franchisees. It's important for franchisees to understand that the Marketing Fund is not required to be audited, although Springhill Suites By Marriott will provide an accounting of Marketing Fund revenues and expenditures for any fiscal year if requested within a specific timeframe.
Given these rights, it is crucial for potential Springhill Suites By Marriott franchisees to fully understand the terms and conditions related to the Marketing Fund. They should inquire about the factors that might lead Springhill Suites By Marriott to discontinue the fund, and what alternative marketing strategies or funding models might be implemented in its place. Understanding these possibilities can help franchisees prepare for potential changes in how marketing is managed and funded, and how those changes might impact their individual businesses.