Will a Springhill Suites By Marriott franchisee receive an exclusive territory?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 12: TERRITORY]
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we or our affiliates own, lease, manage, license, or franchise, or from other channels of distribution or competitive brands that we or our affiliates control.
You may not be granted a territory, but if you are, it will be non-exclusive. Generally, a territory: (i) will apply to SpringHill Suites by Marriott hotels only; (ii) will apply for a duration less than the entire term of the franchise agreement; (iii) will not apply to any hotel that is existing or under development as of the date of the franchise agreement; (iv) will not apply to any hotel or hotels that are members of a chain of hotels or a group of hotels (with a minimum of four hotels in operation) that is acquired by, merged with, franchised by, or joined through a marketing agreement with, us or one of our affiliates, or the operation of all or substantially all of such hotels is transferred to us or one of our affiliates, even if any such hotel converts to a SpringHill Suites by Marriott hotel; and (v) will not apply to any residential or condominium products or other lodging product developed by us or one of our affiliates (including products using our reservation channels, distribution channels, and loyalty programs). Generally, you will not be granted a territory in connection with the residential or condominium component of your hotel development project. If a territory is granted, specific terms for the grant of a territory, the size of the geographic area, and its duration will depend upon the market in which the site is located, and it will not include, either expressly or by implication, any right for you to develop additional hotels at sites within the territory or to enlarge the hotel at the approved site. If you are granted a territory, it may be defined as a radius around your hotel, or delineated by streets, highways, or other geographical boundaries. The continuation of your territorial rights, if any, will not be contingent on your hotel achieving a particular sales volume or market penetration, but may be contingent on other factors such as the timely commencement of construction and opening of your hotel.
The franchise agreement does not provide you with any options, rights of first refusal, or similar rights to acquire additional franchises.
Source: Item 12 — TERRITORY (FDD pages 100–102)
What This Means (2025 FDD)
According to Springhill Suites By Marriott's 2025 Franchise Disclosure Document, franchisees will not receive an exclusive territory. The FDD states that a franchisee "may face competition from other franchisees, from outlets that we or our affiliates own, lease, manage, license, or franchise, or from other channels of distribution or competitive brands that we or our affiliates control." This means that other Springhill Suites By Marriott locations, as well as hotels owned or affiliated with Marriott, could operate in the same area as a franchisee's hotel.
While an exclusive territory is generally not granted, there are some limited circumstances where a non-exclusive territory may be provided. However, such a territory would only apply to SpringHill Suites by Marriott hotels and would be for a duration less than the entire term of the franchise agreement. It would also exclude hotels existing or under development at the time of the agreement, as well as hotels that are part of a chain or group acquired or affiliated with Marriott. The territory may be defined by a radius around the hotel or by geographical boundaries. The continuation of any territorial rights may be contingent on factors such as the timely commencement of construction and opening of the hotel.
This lack of an exclusive territory is a significant factor for prospective franchisees to consider. It means that Springhill Suites By Marriott retains the right to develop or franchise other hotels, including competing brands, in the vicinity of a franchisee's location. This could impact the franchisee's revenue and profitability. The FDD also states that Springhill Suites By Marriott and its affiliates retain the rights to develop, promote, market, own, operate, lease, license, franchise, and/or manage other hotels, lodging products or concepts or other business operations (including SpringHill Suites by Marriott hotels, other Company Brand Businesses, and lodging products operating under the MVW Licensed Brands) at any location, including locations adjacent or proximate to your hotel.
Furthermore, the Springhill Suites By Marriott franchise agreement does not provide franchisees with any options, rights of first refusal, or similar rights to acquire additional franchises. This limits a franchisee's ability to expand their business within a specific area. Prospective franchisees should carefully evaluate the potential for competition in their desired location and consider the implications of not having an exclusive territory before investing in a Springhill Suites By Marriott franchise.