When is the Pre-Opening fee due to Marriott for a Springhill Suites By Marriott franchise?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
UR ESTIMATED INITIAL INVESTMENT
| TYPE OF EXPENDITURE | AMOUNT FOR A 80 – 110 GUESTROOM HOTEL | AMOUNT FOR A 120 – 150 GUESTROOM HOTEL | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS TO BE MADE |
|---|---|---|---|---|---|
| Initial Franchise Application Fee1 | $75,000 | $75,000 | Lump sum | Generally due with the franchis |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 64–66)
What This Means (2025 FDD)
According to the 2025 Springhill Suites By Marriott Franchise Disclosure Document, the pre-opening training, revenue management, marketing & digital support, and related services fee is due to Marriott on demand. This fee ranges from $34,000 to $60,000, paid as a lump sum, for both the 80-110 guestroom and 120-150 guestroom hotel models.
This "on demand" payment schedule means that Marriott can request this payment at any point, giving the franchisee limited advance notice. Franchisees should budget accordingly to ensure funds are readily available when Marriott requires the pre-opening fee. This differs from some other fees, such as the initial franchise application fee, which is generally due with the franchise application.
Understanding the timing and amount of this fee is crucial for managing the initial investment costs. The pre-opening fee covers essential services provided by Marriott to help the franchisee successfully launch their Springhill Suites By Marriott location. Franchisees should clarify with Marriott the specific services covered by this fee and the payment schedule to avoid any surprises during the opening phase.