Can a Springhill Suites By Marriott franchisee transfer or sublicense any part of the System?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee has no right to, and will not, Transfer, sublicense or allow any Person to use any part of the System, unless permitted in this Agreement;
Franchisee will not use any part of the System to incur any obligation or indebtedness on behalf of Franchisor or any of its Affiliates;
Franchisee will not use any of the Proprietary Marks or any names or marks that consist of, contain or are similar to or an abbreviation of any Proprietary Marks, in Franchisor's sole opinion ("Similar Marks"), as part of Franchisee's corporate or legal name, in connection with any business activity except the Hotel, or as a road name or address, whether alone or in combination with Other Marks:
Source: Item 23 — RECEIPTS (FDD pages 139–206)
What This Means (2025 FDD)
According to the 2025 Springhill Suites By Marriott Franchise Disclosure Document, a franchisee is restricted from transferring, sublicensing, or allowing any other party to utilize any aspect of the Springhill Suites By Marriott system unless explicitly permitted within the franchise agreement. This restriction is in place to protect Springhill Suites By Marriott's rights and maintain control over its brand standards. Unauthorized use of the system constitutes an infringement of Springhill Suites By Marriott's rights and a default under the agreement.
This provision ensures that the Springhill Suites By Marriott brand maintains uniformity and quality across all its franchised locations. By preventing franchisees from independently transferring or sublicensing the system, Springhill Suites By Marriott retains the authority to oversee and approve any changes in management or operational control. This helps to safeguard the brand's reputation and ensures that all franchisees adhere to the established standards and practices.
For a prospective Springhill Suites By Marriott franchisee, this means that they cannot sell, lease, or otherwise delegate their rights and responsibilities under the franchise agreement without prior authorization from Springhill Suites By Marriott. Any attempt to do so without permission would be a breach of contract, potentially leading to termination of the franchise agreement and legal repercussions. Therefore, franchisees must seek approval from Springhill Suites By Marriott for any transfer or sublicense arrangements to remain in compliance with the terms of their agreement.