When is the Franchise Fee due for a Springhill Suites By Marriott franchise?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, if you desire to operate your hotel but we determine that you are not qualified to operate a system hotel without additional training, you must participate in the FITM program for open hotels ("FITM-R"), the cost of which is currently $60,000 and must be paid when you execute the franchise agreement. If we determine that you are qualified to operate the hotel, but are unfamiliar with the Marriott systems, we may require you to participate in the Above Property Immersion program ("API"), through which we provide several executive-level conference calls or webinars and virtual, self-paced web-based training to familiarize your executive team with the use of the Marriott programs, systems, and services. You must pay our then-current API enrollment fee, presently $20,000, when you execute the franchise agreement. Franchisees that participate in FITM-R or API must undergo one non-accountable audit.
Franchisees that participate in FITM-R or API may also be required to must also participate in the Revenue Management Advisory Services program, the Customer Engagement Center Property Support Services program, the Digital Marketing program, and the sales programs we specify, at an additional cost. See Items 6 and 11 for more information regarding these programs. You may incur additional fees and costs or be required to retain a third-party management company if you do not complete these programs in t
Source: Item 6 — B. Other Fees That May Apply to Your Transaction (FDD pages 32–64)
What This Means (2025 FDD)
According to the 2025 Springhill Suites By Marriott Franchise Disclosure Document, the timing of the franchise fee payment depends on whether the franchisee is required to participate in the FITM-R or API program. If Springhill Suites By Marriott determines that a franchisee is not qualified to operate a system hotel without additional training, the franchisee must participate in the FITM-R program, which costs $60,000. Alternatively, if Springhill Suites By Marriott determines that the franchisee is qualified to operate the hotel but is unfamiliar with the Marriott systems, the franchisee may be required to participate in the API program, which costs $20,000.
Both the FITM-R fee of $60,000 and the API fee of $20,000 are due when the franchisee executes the franchise agreement. These programs provide executive-level training to familiarize the franchisee's executive team with Marriott programs, systems, and services.
Prospective franchisees should note that participation in FITM-R or API may also require participation in additional programs such as the Revenue Management Advisory Services program, the Customer Engagement Center Property Support Services program, the Digital Marketing program, and other sales programs, which incur additional costs. Failure to complete these programs within the specified timeframe may result in additional fees, costs, or the requirement to retain a third-party management company. Therefore, franchisees should carefully consider these potential additional expenses when evaluating the overall cost of the franchise.