What is the Program Services Contribution used for regarding a Springhill Suites By Marriott franchise?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Program Services. Beginning on the Opening Date, Franchisee will pay Franchisor each month the Program Services Contribution. Franchisor will use the Program Services Contribution to fund certain mandatory programs and services for System Hotels that Franchisee would otherwise be required to pay for separately ("Program Services"), which include, to the extent described in the Disclosure Document:
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- Marketing Fund Activities;
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- development, modification, maintenance, support, administration and operation of certain mandatory Electronic Systems;
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- development, operation, administration and oversight of certain other mandatory programs and services; and
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- the retention or employment of personnel, consultants and other professionals to assist in the development, implementation and administration of Program Services, including collection and accounting of the Program Services Fun
Source: Item 23 — RECEIPTS (FDD pages 139–206)
What This Means (2025 FDD)
According to Springhill Suites By Marriott's 2025 Franchise Disclosure Document, the Program Services Contribution is used to fund certain mandatory programs and services for System Hotels. These programs and services are ones that franchisees would otherwise be required to pay for separately.
The specific programs and services funded by the Program Services Contribution include Marketing Fund Activities, the development, modification, maintenance, support, administration, and operation of certain mandatory Electronic Systems, and the development, operation, administration, and oversight of certain other mandatory programs and services. The contribution also covers the retention or employment of personnel, consultants, and other professionals to assist in the development, implementation, and administration of Program Services, including collection and accounting of the Program Services Fund.
Springhill Suites By Marriott may modify Program Services from time to time and may change the method of funding Program Services, the programs and services covered by the contribution, or the amount or method of calculation of the contribution. They may also merge or operate the Program Services Fund with program services funds used to benefit other Franchisor Products or discontinue the use of the Program Services Contribution to fund any one or all mandatory programs or services for System Hotels. The Program Services do not include services or costs relating to the purchase, installation or deployment of, or training for, any Electronic System, unless otherwise determined by Springhill Suites By Marriott.
Springhill Suites By Marriott may use the Program Services Fund to cover the costs of Program Services for System Hotels as a whole, groups of System Hotels, and other Franchisor Products. There is no obligation to ensure that any particular System Hotel, including the franchisee's Hotel, benefits from Program Services on a pro-rata or other basis or that the Hotel will benefit from Program Services proportionate to the Program Services Contribution paid by the franchisee. Springhill Suites By Marriott and its Affiliates do not hold the Program Services Fund as a trustee or as trust funds and have no fiduciary duty to the franchisee for such funds. The Program Services Contribution may be commingled with other money of Springhill Suites By Marriott and its Affiliates and used to pay all costs, including administrative costs, salaries and overhead, and collection and accounting costs, incurred by Springhill Suites By Marriott or any of its Affiliates for the Program Services Fund.