How long is the franchise term for a new-build Springhill Suites By Marriott hotel?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE OR OTHER AGREEMENT | SUMMARY1 | |
|---|---|---|---|
| a. | Length of the franchise term | Section 2.1and Exhibit A – Item 4 | For a new-build hotel, the term of the franchise agreement typically ends on the 20th anniversary after the date we authorize the hotel to open as a SpringHill Suites by Marriott hotel. If you are acquiring an existing hotel or renewing a franchise agreement, the term is typically less than 20 years and will depend on the remaining term of any franchise agreement for the hotel, the location and condition of the hotel, and scope of the PIP. |
| b. | Renewal or extension of the term | Section 2.2 | The franchise agreement is not renewable, and you should not have any expectation that you will be granted any right to operate the hotel under our brand after the expiration of the term.2 |
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 107–117)
What This Means (2025 FDD)
According to Springhill Suites By Marriott's 2025 Franchise Disclosure Document, the typical franchise term length for a new-build hotel is 20 years. Specifically, the franchise agreement usually ends on the 20th anniversary of the date that Springhill Suites By Marriott authorizes the hotel to open.
For prospective franchisees, this means the initial commitment to the Springhill Suites By Marriott brand is substantial. It's important to consider this long-term obligation when evaluating the investment. Unlike some franchise systems that offer shorter initial terms or renewal options, Springhill Suites By Marriott's agreement does not offer renewal or extension.
This lack of a renewal option means that at the end of the 20-year term, franchisees do not have an assured right to continue operating under the Springhill Suites By Marriott brand. The franchisee would need to negotiate a new agreement, which may include different terms and conditions, including fees. Therefore, franchisees should carefully consider the long-term implications of this fixed-term agreement and factor it into their financial projections and business plans.