What does the Springhill Suites By Marriott franchisee agree to do regarding indemnification of Marriott?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE ACKNOWLEDGES THAT FRANCHISEE HAS HAD AN OPPORTUNITY TO NEGOTIATE.
AND HAS FULLY NEGOTIATED, THE ESSENTIAL STIPULATIONS OF THIS AGREEMENT AND THAT SUCH STIPULATIONS WERE NOT UNILATERALLY IMPOSED ON IT BY MARRIOTT.
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- Indemnification.
Franchisee agrees to defend, indemnify and hold harmless Marriott, its affiliates, and each of their respective current and former officers, directors, shareholders, agents, representatives and employees, and all other persons or entities acting on their behalf, from and against any and all actions, costs, claims, losses, expenses and/or damages, including attorney's fees, asserted by third parties, arising out of or resulting from the performance of the Services or any other action contemplated by this Agreement.
Source: Item 17 — , "Renewal, Termination, Transfer, and Dispute Resolution," is amended by the addition of the following paragraph(s) at the conclusion of the Item: (FDD pages 285–553)
What This Means (2025 FDD)
According to the 2025 Springhill Suites By Marriott Franchise Disclosure Document, the franchisee agrees to defend, indemnify, and hold harmless Marriott, its affiliates, and their respective current and former officers, directors, shareholders, agents, representatives, employees, and all other persons or entities acting on their behalf. This indemnification covers any and all actions, costs, claims, losses, expenses, and/or damages, including attorney's fees, asserted by third parties. These must arise out of or result from the performance of the Services or any other action contemplated by the Franchise Agreement.
In simpler terms, the franchisee is responsible for protecting Marriott from any legal claims or financial losses that occur due to the franchisee's operation of the Springhill Suites By Marriott hotel or the services provided under the agreement. This includes covering legal defense costs and any settlements or judgments against Marriott.
This type of indemnification clause is standard in franchise agreements. It shifts the responsibility for certain risks from the franchisor to the franchisee. A prospective Springhill Suites By Marriott franchisee should carefully consider the potential financial impact of this clause and consult with legal counsel to fully understand their obligations.