Are the pre-opening fees for a new SpringHill Suites By Marriott hotel refundable?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
Listed below are certain estimated one-time non-refundable fees and reimbursements (excluding certain travel and related expenses) that you will pay to us on demand to open a SpringHill Suites by Marriott hotel. We may require you to prepay certain of these expenses. If you are acquiring or converting an existing hotel, your pre-opening fees and costs will vary depending upon, among other things, the systems in place and experience of personnel that are retained at the time of acquisition or conversion.
The costs for pre-opening training and services provided by us (not including costs discussed elsewhere in this Item 5 or costs incurred when purchasing an existing SpringHill Suites by Marriott hotel, see Section 3 below) generally range from $34,000 to $60,000, are subject to change, and are non-refundable. This amount includes: training on the use of the property management system, management and executive training, pre-opening on-site task force training, virtual training, the opening authorization process, associate orientation materials, pre-opening operations and sales and marketing support, and pre-opening revenue management/reservation system rate loading and consultation, as well as an estimate of the travel, meal, and lodging expenses for our trainers, which you must pay. We used the average travel, meal, and lodging expenses for our trainers last year in the range above. The range above excludes, and you must pay for the cost of, travel, meal, and lodging expenses incurred by you and your designated attendees to complete training programs that are not conducted on site. The total cost of preopening training and services may vary based on the size and location of your hotel, your experience, and the experience of your associates, as determined by us.
- A team of one to two trainers, as determined by us, will conduct approximately 5 to 14 days of on-site training, along with virtual support to be conducted during the period before and shortly after the opening of the hotel. We estimate that these on-site costs generally will range from $10,000 to $25,000 based on the experience level and prior experience of your associates and the size
If you wish to extend the opening deadline after you have started construction, or if you wish to extend a construction start deadline after we have given you written notice freezing automatic extensions, you must submit a written request for an extension and pay a $10,000 extension fee. No extension will be granted for more than six months. If we do not approve your request, we will refund the $10,000 you submitted.
Source: Item 6 — B. Other Fees That May Apply to Your Transaction (FDD pages 32–64)
What This Means (2025 FDD)
According to SpringHill Suites By Marriott's 2025 Franchise Disclosure Document, certain pre-opening fees are non-refundable. The document specifies that the costs for pre-opening training and services, generally ranging from $34,000 to $60,000, are non-refundable. These costs cover various aspects such as training on the property management system, management and executive training, on-site task force training, virtual training, the opening authorization process, associate orientation materials, operations and sales and marketing support, and revenue management/reservation system rate loading and consultation. This range also includes an estimate of the travel, meal, and lodging expenses for the trainers.
Specifically, the on-site training costs, conducted by a team of one to two trainers for approximately 5 to 14 days, generally range from $10,000 to $25,000, depending on the experience level of the franchisee's associates and the size of the hotel. These fees are also non-refundable. However, if a franchisee seeks to extend the construction start deadline after automatic extensions are frozen, a $10,000 extension fee is required, which is refundable if the extension request is not approved.
In summary, while most pre-opening fees, particularly those related to training and support services, are non-refundable, franchisees should be aware of the specific conditions under which certain fees, like the extension fee, may be refundable. It is important to carefully review the terms and conditions outlined in the Franchise Disclosure Document and seek clarification from the franchisor regarding the refundability of any specific fees before making any payments.