When are Franchise Fees due for a Springhill Suites By Marriott franchise?
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).
- B. Affiliates and Designees. Any service or obligation of Franchisor under this Agreement may be performed by an Affiliate or designee of Franchisor. Franchisor may designate that payment be made to the Person performing the service. Any reference in this Agreement to Franchisor concerning payments or performance of services includes such Affiliates and designees. Any designation for the performance of services will not relieve Franchisor or Franchisee of any of their obligations under this Agreement.
- C. Right of Set-Off. Franchisor may set-off or deduct any amounts owed to Franchisor or any of its Affiliates by Franchisee or any of its Affiliates from amounts that would otherwise be payable to Franchisee under this Agreement.
- 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. These fees are a percentage of Gross Room Sales, as specified in Item 11 of Exhibit A. The franchisee must make these payments using immediately available funds, and in the manner designated by Springhill Suites By Marriott, which may include electronic funds transfers or centralized payment processing programs. Franchisees are required to execute any necessary documents and cover any associated fees or costs to facilitate such payment methods.
In addition to Franchise Fees, all other payments invoiced by Springhill Suites By Marriott are due as specified on the invoice. Springhill Suites By Marriott may also designate that payments be made to an affiliate or designee performing a service, and any reference to Springhill Suites By Marriott regarding payments includes these affiliates and designees. However, such designations do not relieve Springhill Suites By Marriott or the franchisee of their obligations under the franchise agreement.
Furthermore, Springhill Suites By Marriott retains the right to set-off or deduct any amounts owed by the franchisee or its affiliates from payments otherwise due to the franchisee under the agreement. Late payments will incur interest at a rate of 18% per annum, or the maximum rate permitted by applicable law, accruing from the original due date until the payment is made. This interest charge is in addition to any other remedies Springhill Suites By Marriott may pursue for overdue amounts.