For Springhill Suites By Marriott, when does the initial term of the 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.
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 FDD, the initial term of the agreement depends on the commencement date. If the commencement date falls between January 1st and June 30th, the initial term expires on December 31st of the same year. However, if the commencement date is between July 1st and December 31st, the initial term extends to December 31st of the following year.
For instance, the FDD clarifies that if the commencement date is November 5, 2024, the initial term will expire on December 31, 2025. This means a Springhill Suites By Marriott franchisee starting operations in the latter half of the year will have a slightly longer initial term compared to those starting in the first half.
Furthermore, the agreement automatically renews for successive one-year terms unless either party provides written notice of non-renewal at least 90 days before the current term's expiration. This renewal clause is fairly standard in franchising, providing both the franchisee and Springhill Suites By Marriott flexibility while ensuring continuity unless either party actively decides to terminate the agreement.