Who is the initial franchise application fee for a Springhill Suites By Marriott paid to?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
UR ESTIMATED INITIAL INVESTMENT
| TYPE OF EXPENDITURE | AMOUNT FOR A 80 – 110 GUESTROOM HOTEL | AMOUNT FOR A 120 – 150 GUESTROOM HOTEL | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS TO BE MADE |
|---|---|---|---|---|---|
| Initial Franchise Application Fee1 | $75,000 | $75,000 | Lump sum | Generally due with the franchise application | Marriott |
| Pre-Opening | $34,000 - $60,000 | $34,000 - $60,000 | Lump sum | On demand | Marriott |
| Training, | |||||
| Revenue | |||||
| Management, | |||||
| Marketing & | |||||
| Digital Support, | |||||
| and Related | |||||
| Services2 | |||||
| Property Management, Reservation, Yield Management, Opportunity Management, and Other Systems3 | $92,300 - $113,700 | $92,300 - $113,700 | As arranged by you/ lump sum | As arranged by you/ on demand | Suppliers/ Marriott |
| Market | $6,000 - $18,000 | $6,000 - $18,000 | As arranged | As arranged | Suppliers |
| Feasibility Study4 | by you | by you | |||
| Real Estate5 | Not determinable | Not determinable | As arranged | As arranged | Seller or Lessor |
| because of variables | because of variables | by you | by you | ||
| Building Permit, Tap, and Impact Fees | Not determinable because of variables | Not determinable because of variables |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 64–66)
What This Means (2025 FDD)
According to Springhill Suites By Marriott's 2025 Franchise Disclosure Document, the initial franchise application fee is paid to Marriott. This fee, which is a lump sum payment, is generally due with the franchise application. The amount of the initial franchise application fee is $75,000, regardless of whether the hotel has 80-110 guestrooms or 120-150 guestrooms.
It is important to note that, according to Item 5, this initial franchise application fee is partially refundable if Marriott does not approve the application. All other payments to Marriott are non-refundable. This is a notable benefit for prospective franchisees as it provides some financial protection during the initial stages of the application process.
In addition to the initial franchise application fee, franchisees will also make payments to Marriott for pre-opening training, revenue management, marketing & digital support, and related services. These pre-opening fees range from $34,000 to $60,000 and are also paid in a lump sum. Franchisees will also pay Marriott for property management, reservation, yield management, opportunity management, and other systems, which range from $92,300 to $113,700.