How often is the Program Services Contribution payable for a Springhill Suites By Marriott franchise?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
We have established a program services contribution to cover the cost of certain programs, systems, and services ("Program Services Contribution"), including: (a) advertising, sales and marketing, promotion programs and related research that are funded through the Marketing Fund described in Item 11; (b) a reservation system; (c) the ongoing cost of certain electronic systems, including a yield management system, our support of a property management system, our support of a guest feedback tracking and management system, certain costs associated with the mobile key component of the hotel's guestroom lock system, a digital guest services system, an electronic customer folio delivery system, a virtual private network, the provision of a limited number of hotel-based Marriott.com email addresses, an intranet website supplying information such as standards and quality assurance information, the MDash system, our support of encrypted payment processing, a guest experience platform, and a web-based tool that generates discount forms and cards for associates; (d) a guest satisfaction survey system and an annual audit under the Audit Program; (e) a centralized travel agent commission processing program; and (f) one license for the Marriott Environmental Sustainability Hub ("MESH").
Except as designated by us, the Program Services Contribution generally does not cover costs, expenses or fees for any other programs, systems, or services, including without limitation: (i) the purchase or installation of, or training for, systems for your hotel (including new or replacement systems); (ii) revenue management services; (iii) technology and systems security; or (iv) hotel employee training. Costs paid by the Program Services Contribution include our costs of development, maintenance and support, management, oversight, administration, salaries, and overhead (including collection and accounting). If we provide capital for a project to change or develop new systems covered by the Program Services Contribution, we may recover the capital invested as well as costs incurred by us to finance such invested capital. We may spend all of the contributions in the year collected or carry forward excess contributions into future years. If expenditures exceed amounts collected, we may make loans to cover the shortfalls (and may treat each loan (and any
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 Program Services Contribution is established to cover the costs of specific programs, systems, and services. These include advertising, sales and marketing, promotion programs, a reservation system, and the ongoing cost of certain electronic systems. The Program Services Contribution also covers a guest satisfaction survey system, an annual audit, a centralized travel agent commission processing program, and one license for the Marriott Environmental Sustainability Hub.
The Program Services Contribution generally does not cover costs, expenses or fees for any other programs, systems, or services, including the purchase or installation of systems, revenue management services, technology and systems security, or hotel employee training. The costs paid by the Program Services Contribution include Springhill Suites By Marriott's costs of development, maintenance and support, management, oversight, administration, salaries, and overhead.
The FDD does not specify the frequency of payment for the Program Services Contribution. As such, prospective franchisees should clarify the payment schedule (e.g., monthly, quarterly) with Springhill Suites By Marriott during their due diligence process to fully understand this ongoing financial obligation.