What is the franchisee and Marriott covenanting not to do regarding the Springhill Suites By Marriott programs?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
Covenants not to Sue.
Franchisee and Marriott hereby acknowledge their mutual understanding that success under the Programs is uncertain, and their mutual desire to ensure that these Programs not damage their existing relationship by resulting in contentious, distracting and expensive litigation.
Without limiting the generality of the foregoing, Franchisee further acknowledges that the covenants set forth in this Paragraph 12 were a material inducement to Marriott to enter into this Agreement, because of the impact of those covenants on the risks (and associated economic consequences) of proceeding with this Agreement.
In order to implement the foregoing acknowledgments, desires and understandings, Franchisee and Marriott for themselves and their respective affiliates and subsidiaries and the current and former officers, directors, shareholders, partners, employees, predecessors, successors, attorneys, agents, representatives, and assigns and all other persons
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, both the franchisee and Marriott acknowledge the uncertainty of success under the Programs and express a mutual desire to prevent these Programs from damaging their existing relationship through litigation. To that end, they agree not to sue one another.
This agreement is intended to avoid contentious, distracting, and expensive lawsuits that could arise from the Programs. The franchisee acknowledges that this covenant not to sue was a significant factor that motivated Marriott to enter into the agreement, due to its impact on the risks and economic consequences associated with proceeding with the agreement.
This mutual understanding is implemented through covenants that apply to both Springhill Suites By Marriott and the franchisee, as well as their respective affiliates, subsidiaries, officers, directors, shareholders, partners, employees, predecessors, successors, attorneys, agents, representatives, and assigns. This comprehensive coverage ensures that all related parties are bound by the agreement not to initiate legal action against each other in relation to the Programs.