factual

When is the franchise application fee generally payable for a SpringHill Suites By Marriott franchise?

Springhill_Suites_By_Marriott Franchise · 2025 FDD

Answer from 2025 FDD Document

50,000 or $500 per guestroom.

Franchise application fees are generally payable in full at the time you submit your franchise application and are non-refundable upon approval of your application. If you withdraw an application before it is approved, or if your application is not approved, we will refund the application fee for each unapproved hotel, less $10,000 per unapproved hotel and our outs

Source: Item 4 — BANKRUPTCY (FDD pages 31–32)

What This Means (2025 FDD)

According to SpringHill Suites By Marriott's 2025 Franchise Disclosure Document, the franchise application fees are generally payable in full when you submit your franchise application. This fee is non-refundable once the application is approved. However, if you withdraw your application before approval, or if SpringHill Suites By Marriott does not approve it, you will receive a refund of the application fee for each unapproved hotel, minus $10,000 per unapproved hotel, as well as the franchisor's outside counsel fees and expenses.

For a new-to-system SpringHill Suites by Marriott hotel, including the conversion of a non-Company Brand Hotel, the franchise application fee is $75,000, plus an additional $400 per suite if the hotel exceeds 150 suites. For an existing SpringHill Suites by Marriott hotel, or to convert a hotel that is currently managed by SpringHill Suites By Marriott or one of its affiliates to a franchised SpringHill Suites By Marriott hotel, the application fee is $150,000 or $500 per guestroom.

This means that prospective franchisees need to be prepared to pay the full application fee upfront when they apply. It also highlights the importance of carefully considering the investment and conducting thorough due diligence before applying, as only a partial refund is available if the application is withdrawn or not approved. The deduction of $10,000 plus outside counsel fees can be a significant amount, so applicants should be reasonably confident in their project before submitting their application.

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.