table_specific

For Springhill Suites By Marriott, what does footnote 3 in Table No. 3 indicate regarding receivership of outlets?

Q: For Springhill Suites By Marriott, what does footnote 3 in Table No. 3 indicate regarding receivership of outlets?

### NOTE: - 1 This outlet had two transfers in fiscal year 2022. On August 11, 2022, the hotel was sold to a new franchisee, and on December 6, 2022, the hotel was sold to a new franchisee. - 2 One of these outlets had two transfers in fiscal year 2022. On August 11, 2022, the hotel was sold to a new franchisee, and on November 15, 2022, the hotel was sold to a new franchisee. - 3 On December 10, 2024, a receiver took possession of one outlet. - 4 On May 16, 2024, a receiver took possession of one outlet. - Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 124–137)

Springhill_Suites_By_Marriott Franchise · 2025 FDD

Answer from 2025 FDD Document

NOTE:

1 This outlet had two transfers in fiscal year 2022. On August 11, 2022, the hotel was sold to a new franchisee, and on December 6, 2022, the hotel was sold to a new franchisee.
2 One of these outlets had two transfers in fiscal year 2022. On August 11, 2022, the hotel was sold to a new franchisee, and on November 15, 2022, the hotel was sold to a new franchisee.
³On December 10, 2024, a receiver took possession of one outlet.
⁴On May 16, 2024, a receiver took possession of one outlet.

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 124–137)

What This Means (2025 FDD)

According to Springhill Suites By Marriott's 2025 Franchise Disclosure Document, footnote 3 in Table No. 3 clarifies specific instances of receivership affecting franchised outlets. Specifically, on December 10, 2024, a receiver took possession of one Springhill Suites By Marriott outlet. This indicates a situation where a third party, the receiver, assumed control of the outlet's operations, typically due to financial distress or default by the franchisee.

Additionally, footnote 4 indicates that on May 16, 2024, a receiver took possession of another Springhill Suites By Marriott outlet. These footnotes provide transparency regarding the stability and operational challenges faced by some franchisees within the Springhill Suites By Marriott system. Receivership can occur for various reasons, including financial mismanagement, failure to meet debt obligations, or other breaches of agreements, and it signifies a significant disruption in the operation of the franchise.

For a prospective Springhill Suites By Marriott franchisee, these instances of receivership highlight the importance of thorough financial planning and operational management. It is crucial to understand the factors that can lead to such outcomes and to assess the risks associated with operating a franchise. Potential franchisees should carefully review the financial health of existing franchisees, understand the support and resources provided by Springhill Suites By Marriott to prevent financial distress, and ensure they have adequate capital and expertise to manage their business effectively. Understanding these risks and taking proactive measures can help mitigate the likelihood of encountering similar challenges.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.

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