Is a Springhill Suites By Marriott franchisee allowed to renew or extend the franchise agreement?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE OR OTHER AGREEMENT | SUMMARY1 | |
|---|---|---|---|
| a. | Length of the franchise term | Section 2.1and Exhibit A – Item 4 | For a new-build hotel, the term of the franchise agreement typically ends on the 20th anniversary after the date we authorize the hotel to open as a SpringHill Suites by Marriott hotel. If you are acquiring an existing hotel or renewing a franchise agreement, the term is typically less than 20 years and will depend on the remaining term of any franchise agreement for the hotel, the location and condition of the hotel, and scope of the PIP. |
| b. | Renewal or extension of the term | Section 2.2 | The franchise agreement is not renewable, and you should not have any expectation that you will be granted any right to operate the hotel under our brand after the expiration of the term.2 |
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 107–117)
What This Means (2025 FDD)
According to Springhill Suites By Marriott's 2025 Franchise Disclosure Document, the franchise agreement is not renewable or extendable. The FDD states that franchisees should not expect to be granted any right to operate the hotel under the Springhill Suites By Marriott brand after the initial term expires. The typical franchise term for a new-build Springhill Suites By Marriott hotel ends on the 20th anniversary of the hotel's opening authorization date. For franchisees acquiring an existing hotel or renewing a franchise agreement, the term is typically less than 20 years, depending on factors like the remaining term of any existing franchise agreement, the hotel's location and condition, and the scope of any required property improvements.
However, the FDD also notes that upon the expiration of the initial term, Springhill Suites By Marriott may, at its sole discretion, agree to enter into a new franchise agreement with the franchisee. This new agreement would be based on Springhill Suites By Marriott's then-current form and could include materially different terms and conditions than the original franchise agreement, including variations in franchise fees and the agreement's duration.
This means that while franchisees do not have a guaranteed right to renew their franchise agreement, they may have the opportunity to negotiate a new agreement with Springhill Suites By Marriott at the end of the initial term. Prospective franchisees should be aware that the terms of any new agreement could be significantly different from the original, potentially impacting the financial and operational aspects of the franchise. It is important for potential franchisees to consider this uncertainty when evaluating the long-term prospects of a Springhill Suites By Marriott franchise.