Does the Springhill Suites By Marriott franchise agreement create any third-party beneficiaries?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. No Third-Party Beneficiary. Nothing in this Agreement is intended to create any third-party beneficiary or give any rights or remedies to any Person except Franchisor, Franchisee and Owner and their respective permitted successors and assigns.
Source: Item 11 — FINANCING OF THE HOTEL (FDD pages 265–285)
What This Means (2025 FDD)
According to the 2025 Springhill Suites By Marriott Franchise Disclosure Document, the franchise agreement does not intend to create any third-party beneficiaries. The agreement explicitly states that only the Franchisor, Franchisee, and Owner, along with their permitted successors and assigns, are intended to have rights or remedies under the agreement. This provision aims to limit the scope of the agreement to the parties directly involved, preventing external parties from claiming rights or benefits based on the agreement's terms.
This clause is a common legal safeguard in franchise agreements. By disclaiming any third-party beneficiaries, Springhill Suites By Marriott seeks to avoid potential legal complications that could arise if other parties claimed they were entitled to certain benefits or remedies under the agreement. This helps to maintain clarity and control over the contractual relationship, ensuring that only those who are directly party to the agreement can enforce its terms.
For a prospective Springhill Suites By Marriott franchisee, this means that the rights and obligations within the franchise agreement are strictly between the franchisee, the franchisor, and the owner (if applicable). No other individual or entity can claim rights or benefits under the agreement. This provision provides a level of assurance that the franchisee's contractual relationship is limited to the specified parties, which can be beneficial in managing potential disputes or claims.