How does the Springhill Suites By Marriott franchise agreement define an 'Affiliate'?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
"Affiliate" means, for any Person, a Person that is directly or indirectly Controlling, Controlled by, or under common Control with such Person.
Source: Item 16 — FINANCING OF THE HOTEL (FDD pages 206–257)
What This Means (2025 FDD)
According to the 2025 Springhill Suites By Marriott Franchise Disclosure Document, an 'Affiliate' is defined in relation to a 'Person'. In this context, a 'Person' can be an individual, partnership, corporation, or any other legal entity. An affiliate is any entity that directly or indirectly controls, is controlled by, or is under common control with that 'Person'.
This definition is important because it clarifies the scope of various obligations and restrictions within the franchise agreement. For example, if a franchisee has an affiliate, Springhill Suites By Marriott may extend certain requirements or limitations to that affiliate as well. This could impact the franchisee's business decisions and operations, as actions taken by an affiliate could be attributed to the franchisee.
The concept of 'control' is further defined in the FDD, meaning the power to direct the management or policies of a person or the power to veto major policy decisions. This definition of 'Affiliate' is a standard legal term and is used to ensure that franchisees cannot circumvent the terms of their agreements by operating through related entities.