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For Springhill Suites By Marriott, what is the frequency of the fee payment schedule?

Springhill_Suites_By_Marriott Franchise · 2025 FDD

Answer from 2025 FDD Document

If the Hotel did not participate in Franchisor's services during the previous calendar year, Franchisor will provide the set-up services described in this Schedule C and charge Franchisee the one-time fee described below.

A new-build hotel will not be assessed this fee if the Franchisee signed a letter prior to opening. The fee shall be due in full 60 days after the Commencement Date.

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)

Based on the 2025 Franchise Disclosure Document, the Springhill Suites By Marriott franchise has a one-time fee payment schedule for the APRC One-Time Set-Up Fee. If a hotel did not participate in the franchisor's services during the previous calendar year, Springhill Suites By Marriott will provide set-up services and charge a one-time fee. However, a new-build hotel will not be assessed this fee if the franchisee signed a letter prior to opening. This fee is due in full 60 days after the Commencement Date.

This one-time fee structure differs from ongoing fees such as royalties or marketing contributions, which are typically paid monthly or quarterly in the franchise industry. The APRC One-Time Set-Up Fee is specifically for initial services provided to hotels that haven't previously utilized Springhill Suites By Marriott's services, ensuring they are properly integrated into the franchise system.

For prospective franchisees, it's important to determine whether the hotel qualifies as a new-build or if it requires the set-up services. If the set-up fee applies, the franchisee should budget for this expense and ensure payment is made within 60 days of the Commencement Date to avoid any potential penalties or disruptions to the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.