How often will Springhill Suites By Marriott charge the franchisee a fee for services?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Fee. Franchisor will charge Franchisee a fee for each month on the first day of the month for the Services as set forth in Schedule "B" to this Agreement, which shall be pro-rated for any partial month for which the Services are performed.
In addition, if the Hotel did not participate in Franchisor's revenue management services during 2024, Franchisor will provide the set-up services described in Schedule C to this Agreement and charge Franchisee the one-time fee set forth in Schedule C.
The fee shall be due in full 60 days after the Commencement Date.
Franchisee agrees to pay such fees to Franchisor within fifteen (15) days of receipt of an invoice therefore.
Any payments not actually received by Franchisor on or before the due date shall be deemed overdue.
Franchisor may modify the fee effective as of the beginning of any renewal term, subject to Franchisee's right to terminate this Agreement discussed in Section 4, above.
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 Springhill Suites By Marriott's 2025 Franchise Disclosure Document, the franchisee will be charged a fee for services each month on the first day of the month. This fee covers the services outlined in Schedule "B" of the franchise agreement. If a hotel did not participate in Springhill Suites By Marriott's services during the previous calendar year, the franchisee will also be charged a one-time set-up fee for the services described in Schedule C. This one-time fee is due 60 days after the commencement date.
The monthly fee will be prorated for any partial month in which the services are performed. Franchisees are required to pay these fees within fifteen days of receiving an invoice from Springhill Suites By Marriott. Payments not received by the due date are considered overdue.
Springhill Suites By Marriott retains the right to modify the service fee at the beginning of any renewal term, but the franchisee has the option to terminate the agreement if they do not agree with the modified fee. This monthly fee structure is common in the franchise industry, as it allows franchisors to collect ongoing revenue for the services they provide to franchisees.