When is the Program Services Contribution due 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 Springhill Suites By Marriott's 2025 Franchise Disclosure Document, the timing of the Program Services Contribution is not explicitly detailed. However, the FDD does outline what the contribution covers, including advertising, sales and marketing, promotion programs, a reservation system, electronic systems, guest satisfaction surveys, a centralized travel agent commission processing program, and a license for the Marriott Environmental Sustainability Hub.
The Program Services Contribution does not generally cover costs, expenses, or fees for other programs, systems, or services, such as the purchase or installation of systems, revenue management services, technology and systems security, or hotel employee training. The contribution covers Springhill Suites By Marriott's costs of development, maintenance and support, management, oversight, administration, salaries, and overhead, including collection and accounting.
While the FDD specifies what the Program Services Contribution covers, it does not state when this contribution is due. A prospective franchisee should ask Springhill Suites By Marriott for clarification on when the Program Services Contribution is due, how it is calculated, and whether there are any circumstances that might affect the amount or timing of the contribution.