Is the Springhill Suites By Marriott franchise agreement renewable or extendable?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE OR OTHER AGREEMENT | SUMMARY1 | |
|---|---|---|---|
| a. | Length of the franchise term | Section 2.1and Exhibit A – Item 4 | For a new-build hotel, the term of the franchise agreement typically ends on the 20th anniversary after the date we authorize the hotel to open as a SpringHill Suites by Marriott hotel. If you are acquiring an existing hotel or renewing a franchise agreement, the term is typically less than 20 years and will depend on the remaining term of any franchise agreement for the hotel, the location and condition of the hotel, and scope of the PIP. |
| b. | Renewal or extension of the term | Section 2.2 | The franchise agreement is not renewable, and you should not have any expectation that you will be granted any right to operate the hotel under our brand after the expiration of the term.2 |
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 107–117)
What This Means (2025 FDD)
According to the 2025 Springhill Suites By Marriott Franchise Disclosure Document, the franchise agreement is not renewable or extendable. The FDD states that franchisees should not expect to be granted any right to operate the hotel under the Springhill Suites By Marriott brand after the initial term expires.
For a new-build hotel, the franchise agreement typically ends on the 20th anniversary of the hotel opening. If a franchisee is acquiring an existing hotel or renewing a franchise agreement, the term is typically less than 20 years. The length of the term depends on the remaining term of any existing franchise agreement, the location and condition of the hotel, and the scope of any Property Improvement Plan (PIP) that may be required.
This lack of a renewal option is a significant point for prospective franchisees. It means that at the end of the franchise term, Springhill Suites By Marriott is under no obligation to allow the franchisee to continue operating under the brand. The franchisee would need to negotiate a new agreement, which could have materially different terms, including higher fees or stricter operating standards. This introduces uncertainty about the long-term viability of the business under the Springhill Suites By Marriott brand.