When are Franchise Fees due to Springhill Suites By Marriott?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
3.5 Timing of Payments and Performance of Services.
- A. Timing of Payments. Franchise Fees are due within 15 days after the end of each month. All other payments are due as invoiced. All payments will be made in immediately available funds, at the location and in the manner designated by Franchisor (which may include payment through electronic funds transfers or centralized payment processing programs as specified by Franchisor, in which case Franchisee will execute any documents, pay any fees and costs, and take any other action required by Franchisor to effect such payment).
- 3.6 Interest on Late Payments. Franchisee will pay interest on any amount that is not paid when due. Interest will accrue at a rate of 18% per annum (or, if less, the maximum interest rate permitted by Applicable Law) from the date such overdue amount was due until paid. Franchisor's right to receive interest is in addition to any other remedies Franchisor may have.
Source: Item 23 — RECEIPTS (FDD pages 139–206)
What This Means (2025 FDD)
According to Springhill Suites By Marriott's 2025 Franchise Disclosure Document, Franchise Fees are due within 15 days after the end of each month. This means that a franchisee must calculate their Gross Room Sales for a given month and remit 5.5% of that amount to Springhill Suites By Marriott within that 15-day window.
All other payments owed to Springhill Suites By Marriott, besides the monthly franchise fees, are due as invoiced. The method of payment must be in immediately available funds, and made at the location and in the manner designated by Springhill Suites By Marriott, which may include electronic funds transfers or centralized payment processing programs. The franchisee is responsible for executing any documents, paying any fees and costs, and taking any other action required by Springhill Suites By Marriott to effect such payment.
If a franchisee fails to make timely payments, Springhill Suites By Marriott charges interest on the overdue amount. The interest accrues at a rate of 18% per annum, or the maximum rate permitted by applicable law if it is less than 18%. This interest is calculated from the original due date until the payment is made. This right to receive interest is in addition to any other remedies Springhill Suites By Marriott may pursue for late payment.