How often are the Franchise Fees payable for a Springhill Suites By Marriott franchise?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
nts related to the hotel.
- 3 In certain circumstances, we may consider reducing our monthly franchise fees to less than the standard amount, with the reduction typically decreasing over time and applying only in the first few years. If the monthly franchise fees are less than the standard amount, we may also adjust the term of your franchise agreement. In deciding whether to make such changes, we will consider, among other factors: (i) market penetration opportunities; (ii) the location and size of the hotel; (iii) the economic and financial environment; (iv) the cost to the franchisee to complete the conversion of an existing hotel; (v) whether our reducing a portion of the fees would aid in the successful development or conversion of the hotel; (vi) whether the franchisee is willing to commit to playing an active role in growing the system; and (vii) other relevant factors pertinent to the project and the system.
Source: Item 6 — B. Other Fees That May Apply to Your Transaction (FDD pages 32–64)
What This Means (2025 FDD)
According to the 2025 Springhill Suites By Marriott Franchise Disclosure Document, the franchise agreement may require payment of monthly franchise fees.
Springhill Suites By Marriott may consider reducing the standard monthly franchise fees, with the reduction typically decreasing over time and applying only in the first few years of operation. If the monthly franchise fees are less than the standard amount, Springhill Suites By Marriott may also adjust the term of the franchise agreement.
In deciding whether to make such changes, Springhill Suites By Marriott will consider factors such as market penetration opportunities, the location and size of the hotel, the economic and financial environment, the cost to the franchisee to complete the conversion of an existing hotel, whether reducing a portion of the fees would aid in the successful development or conversion of the hotel, the franchisee's willingness to commit to playing an active role in growing the system, and other relevant factors pertinent to the project and the system. Gross room sales, which are used to calculate the monthly franchise fees, must be accounted for on an accrual basis.