When does the Springhill Suites By Marriott Participation Agreement terminate?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
The initial term of this Agreement shall begin on the Commencement Date and shall expire either (1) December 31 of that same year, if the Commencement Date is between January 1st and June 30, or (2) December 31 of the next year, if the Commencement Date is between July 1 and December 31.
For purposes of clarity, if the Commencement Date is November 5, 2019, the initial term will expire on December 31, 2020.
This Agreement shall automatically renew for successive terms of one calendar year each unless either party provides written notice of non-renewal at least ninety (90) days in advance of the expiration of the then-current term.
In the event that Franchisee is in default under this Agreement, Marriott may terminate this Agreement by giving thirty (30) days' written notice to Franchisee.
Subject to Section 7.d, Franchisee may terminate this Agreement by giving ninety (90) days' written notice to Marriott.
This Agreement will immediately terminate upon termination of the Franchise Agreement; except in the event that Marriott consents to or approves the transaction (including a sale of the Hotel or other transfer requiring the consent of Marriott) pursuant to which the Franchise Agreement is terminated, in which case this Agreement may be assigned as set forth in any such consent or approval.
Franchisee acknowledges that Marriott may be damaged in several ways upon e. termination of this Agreement pursuant to Paragraph 7.b or Paragraph 7.c (an "Event Termination").
Franchisee acknowledges that certain costs and expenses related to the Hotel's participation in the Programs, as allocated to Franchisee pursuant to Paragraph 3 and Attachment A (including all of those costs allocated pursuant to Exhibits attached thereto), have already been incurred by Marriott or accrued by Franchisee prior to the date of the Event Termination ("Prior Costs").
Furthermore, certain costs and expenses related to the Hotel's participation in the Programs, as allocated or allocable to Franchisee pursuant to Paragraph 3 and Attachment A and the Exhibits thereto, to be incurred by Marriott or accrued by Franchisee, after the Event Termination ("Future Costs") may not be recoverable.
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 the 2025 Springhill Suites By Marriott Franchise Disclosure Document, the initial term of the Participation Agreement depends on when the agreement begins. If the Commencement Date falls between January 1st and June 30th, the initial term expires on December 31st of the same year. However, if the Commencement Date is between July 1st and December 31st, the initial term extends until December 31st of the following year. For example, if the Commencement Date is November 5, 2019, the initial term concludes on December 31, 2020.
The Participation Agreement automatically renews for successive one-year terms unless either party provides written notice of non-renewal at least 90 days before the current term expires. Springhill Suites By Marriott can terminate the agreement with a 30-day written notice if the franchisee defaults. The franchisee can terminate the agreement with a 90-day written notice to Springhill Suites By Marriott, subject to certain conditions outlined in Section 7.d of the agreement.
The Participation Agreement will also terminate immediately upon the termination of the Franchise Agreement. However, if Springhill Suites By Marriott approves the transaction leading to the Franchise Agreement's termination, such as a hotel sale, the Participation Agreement may be assigned as part of that approval. Franchisees should note that terminating the agreement may result in financial repercussions, as Springhill Suites By Marriott may incur costs before and after the termination that may not be fully recoverable.