When does the initial term of the Springhill Suites By Marriott agreement expire?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
The initial term of this Agreement shall begin on the Commencement Date and shall expire either (1) December 31 of that same year, if the Commencement Date is between January 1st and June 30, or (2) December 31 of the next year, if the Commencement Date is between July 1 and December 31.
For purposes of clarity, if the Commencement Date is November 5, 2024, the initial term will expire on December 31, 2025.
This Agreement shall automatically renew for successive terms of one calendar year each unless either party provides written notice of non-renewal at least ninety (90) days in advance of the expiration of the then-current term.
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, the initial term of the agreement begins on the Commencement Date. The agreement will expire on either December 31 of the same year if the Commencement Date falls between January 1st and June 30, or on December 31 of the following year if the Commencement Date is between July 1 and December 31.
For example, if the Commencement Date is November 5, 2024, the initial term will expire on December 31, 2025. This means that the length of the initial term can vary from a few weeks to almost two years, depending on when the franchise begins operations.
After the initial term, the agreement automatically renews for successive one-year terms unless either party provides written notice of non-renewal at least ninety (90) days before the current term expires. This renewal process continues unless either Springhill Suites By Marriott or the franchisee decides to terminate the agreement, providing a mechanism for ongoing partnership while also allowing for termination with sufficient notice.