What is the purpose of the Program Services Contribution fee for Springhill Suites By Marriott?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
e project and the system.
- 4 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
interest charged thereon) as a receivable to be repaid in subsequent periods). The Program Services Contribution may be combined with the Program Services Contributions for one or more other Company Brands, and all franchisees may not benefit on the same basis from Program Services Contributions. The Program Services Contribution may be merged, modified, or discontinued at any time. We may change the Program Services Contribution amount, or the costs covered by the Program Services Contribution at any time. We are not the trustee of, and have no fiduciary duty to you for, the Program Services Contribution.
5We may change our systems, such as our reservation, yield management, sales, marketing, and technology systems, and add or subtract training and other programs at any time. You must fully participate in these changed or new systems or programs.
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 Program Services Contribution is established to cover the costs of specific programs, systems, and services. These include advertising, sales and marketing, promotion programs, and related research funded through the Marketing Fund. It also covers the reservation system and the ongoing costs of certain electronic systems. These electronic systems include a yield management system, support for a property management system, a guest feedback tracking and management system, 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, support of encrypted payment processing, a guest experience platform, and a web-based tool that generates discount forms and cards for associates.
Additionally, the Program Services Contribution covers a guest satisfaction survey system, an annual audit under the Audit Program, a centralized travel agent commission processing program, and one license for the Marriott Environmental Sustainability Hub (MESH). However, the Program Services Contribution generally does not cover costs, expenses, or fees for other programs, systems, or services unless designated by Springhill Suites By Marriott. This includes the purchase or installation of systems, revenue management services, technology and systems security, or hotel employee training.
The costs paid by the Program Services Contribution include Springhill Suites By Marriott's costs of development, maintenance and support, management, oversight, administration, salaries, and overhead, including collection and accounting. Springhill Suites By Marriott may recover capital invested in projects to change or develop new systems covered by the Program Services Contribution, as well as costs incurred to finance such invested capital. The brand may spend all contributions in the year collected or carry forward excess contributions into future years and may make loans to cover shortfalls if expenditures exceed amounts collected, treating such loans as receivables to be repaid in subsequent periods.
The Program Services Contribution may be combined with contributions for other Company Brands, and not all franchisees may benefit equally from it. Springhill Suites By Marriott retains the right to merge, modify, or discontinue the Program Services Contribution at any time and to change the amount or the costs covered. It is important to note that Springhill Suites By Marriott is not the trustee of, and has no fiduciary duty to franchisees regarding the Program Services Contribution.