Do the financial statements for Springhill Suites By Marriott include statements of member's equity?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
We capitalize only incremental costs that Marriott incurs on our behalf to acquire franchise and license agreements, which we reimburse through a related party payable. We record these costs incurred to obtain contracts with customers within the "Intangible assets, net" caption of our Balance Sheets. We amortize these costs on a straight-line basis over the initial term of the underlying agreements, ranging from 10 to 30 years, in the "Contract investment amortization" and "Cost reimbursement revenue" captions of our Income Statements.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 137–138)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, it is not possible to determine whether the financial statements for Springhill Suites By Marriott include statements of member's equity. While Item 17 references balance sheets and income statements, it does not specify whether a statement of member's equity is included. The excerpt from Item 17 does mention that Marriott capitalizes incremental costs to acquire franchise and license agreements, recording these within the "Intangible assets, net" caption of their Balance Sheets and amortizing them over 10 to 30 years. It also mentions the recording of intangible assets related to a parent company's acquisition. However, this information does not address the inclusion of a statement of member's equity.
To determine if Springhill Suites By Marriott's financial statements include a statement of member's equity, a prospective franchisee should review the full financial statements included in the FDD. If the statement is not present, they should ask Springhill Suites By Marriott directly whether such a statement is prepared and available for review. This is important for understanding the equity structure and financial health of the company.
Understanding the equity structure can provide insights into the financial stability and ownership of Springhill Suites By Marriott, which can be a critical factor in evaluating the franchise opportunity. Reviewing the complete financial statements and asking specific questions about member's equity will help a potential franchisee make a more informed decision.