What is the interest rate charged on late payments for a Springhill Suites By Marriott franchise?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will pay interest on any amount that is not paid when due. Interest will accrue at a rate of 18% per annum (or, if less, the maximum interest rate permitted by Applicable Law) from the date such overdue amount was due until paid. Franchisor's right to receive interest is in addition to any other remedies Franchisor may have.
Source: Item 23 — RECEIPTS (FDD pages 139–206)
What This Means (2025 FDD)
According to Springhill Suites By Marriott's 2025 Franchise Disclosure Document, if a franchisee fails to make payments on time, they will be charged interest on the overdue amount. The interest rate is set at 18% per annum, but if the applicable law specifies a lower maximum interest rate, that lower rate will be applied instead. This interest accrues from the original due date until the payment is fully settled.
This policy ensures that Springhill Suites By Marriott is compensated for the time value of money and the inconvenience caused by late payments. It also incentivizes franchisees to manage their finances responsibly and make timely payments. The clause specifying the 'maximum interest rate permitted by Applicable Law' protects the franchisee from potentially excessive interest charges that might violate local regulations.
For a prospective Springhill Suites By Marriott franchisee, this means that maintaining diligent financial management is crucial to avoid incurring these interest charges. Franchisees should be aware of the payment due dates and ensure timely remittance to avoid the 18% annual interest or the maximum rate allowed by law, whichever is lower. This is in addition to any other remedies Springhill Suites By Marriott may pursue for the late payment.