What is the purpose of the Term Sheet for a Springhill Suites By Marriott franchise agreement?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
ot all such franchisees will be able to communicate with you.
Franchisee Associations
There is a franchisee advisory council ("FAC") for the SpringHill Suites hotels that we created. The following is contact information for the officer of the SpringHill Suites FAC and Marriott's brand representative:
President Sanjay Naik
Lowen Hospitality Management, LLC
1920 Enchanted Way
Suite 200
Grapevine, TX 76051
Phone: (214) 596-1500 x201
Email: sanjay.naik@lowenhospitality.com
Franchisor Contact Katherine Hammes
Marriott International, Inc. 7750 Wisconsin Avenue
Dept. 51/010.62
Bethesda, MD 20814 Phone: (301) 380-4979
Email: katherine.hammes@marriott.com
FINANCIAL STATEMENTS
Attached as Exhibit J are the audited balance sheet of MIF, L.L.C. as of December 31, 2024, and 2023, and the related statements of income, members' equity, and cash flows for each of the three fiscal years in the period ended December 31, 2024.
CONTRACTS
The following agreements and other documents are part of this disclosure document.
| EXHIBIT A | Term Sheet | |-----------|-----------------------------------------------------------------------------------------------------------------| | EXHIBIT B | Application | | EXHIBIT C | Franchise Agreement and Related Agreements | | EXHIBIT D | State Amendments to Disclosure Document | | EXHIBIT E | State Amendments to Franchise Agreement | | EXHIBIT F | Agents for Service of Process | | EXHIBIT G | State Regulatory Authorities | | EXHIBIT H | System Agreements - AT&T Participation Agreement - Electronic Funds Transfer Authorization Form | | EXHIBIT I | Lodging Laws and Regulations | | EXHIBIT J | Audited Financial Statements of MIF, L.L.C. for the Three Fiscal Years in the Period Ended December 31, 2024 | | EXHIBIT K | Manuals, Standards, and Resources | | EXHIBIT L | Service Agreements - Revenue Management Advisory Services Agreements - Shared Services Agreement - Area Sales and Multi-Hotel Sales - Customer Engagement Center Property Support Services Agreement - Franchise Operations Support Resources Services Agreement - Above Property Room Control Consulting Agreement | | EXHIBIT M | Open Outlets/Unopened Outlets | | EXHIBIT N | Former Franchisees | | | | EXHIBIT O Comfort Letter
RECEIPTS
When you receive this disclosure document, please sign, and return the Receipt page attached at the back of this disclosure document in accordance with the instructions on the Receipt page. The application cannot be presented to the appropriate committee for consideration until we receive the properly signed receipt. Please contact the Lodging Development Department, (301) 380-3000, if you need more information.
IMPORTANT INSTRUCTIONS:
CERTAIN STATES REQUIRE SPECIFIC INFORMATION TO BE INCLUDED IN THE DISCLOSURE DOCUMENT. PLEASE REVIEW THE AMENDMENTS TO THIS DISCLOSURE DOCUMENT AND TO THE FRANCHISE AGREEMENT CONTAINED IN EXHIBITS D AND E.
EXHIBIT A
TERM SHEET
TERM SHEET
| franchise agreement l | heet (the " Term Sheet ") outlines the principal business terms for a proposed between (together with its Affiliates, " Franchisee ") anchisor") for a hotel and its related facilities (the " Hotel ") at (the " Site ") under the SpringHill Suites by Marriott brand (" Brand "). | |-----------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Number of Guestrooms: | Approximately []. | | Term: | [] years after the hotel opens as a Brand Hotel. | | Application Fee: | $75,000 plus $400 per guestroom in excess of 150 guestrooms, which is due upon submission of an application for a franchise agreement. | | Approval Extension Fee: | $10,000 if the franchise agreement and related agreements are not signed within 60 days of receipt | | Franchise Fees: | 5.5% of Gross Room Sales per month | | Program Services | Franchisee will pay a program services contribution to fund certain mandatory programs and services, as set forth in the franchise disclosure document ("FDD"). | | Contribution: | | | Other Fees and Expenses: | All other costs, expenses, charges and fees set forth in the FDD and standard form franchise agreement and related agreements included in the FDD (the " Agreements "). | | Franchise | The form of the franchise agreement and related agreements will be the standard forms included in the FDD. | | Agreement: | | | Guaranty: | Franchisee's principals or other persons acceptable to Franchisor will provide a guaranty of Franchisee's obligations under the Agreements. | | Restricted | Franchisor will not authorize the opening of another Brand hotel for years after the Opening Date of the Hotel, not to extend beyond | | Territory: | | | [Conversion Requirements: | Franchisee, at its own expense, will timely commence and complete the Property Improvement Plan to be agreed on and included in the franchise agreement.] | | [Modular | [For projects that are expected to satisfy the requirements of the modular construction development incentive program, add the following: | | Construction | | | Incentive: | If Franchisee satisfies the requirements for Franchisor's modular construction |
development incentive program as described in the FDD (the "Modular Construction Incentive Program") Franchisor will pay Franchisee key money in the amount of the Modular Incentive Key Money Amount 60 days after all requirements for the occurrence of the Opening Date have been satisfied in consideration of Franchisee's execution of the Agreements, use of modular construction, and operation of the Hotel for the Term. Franchisee will pay to Franchisor the Unamortized Key Money Amount if the Franchise Agreement is terminated before the end of the Term. If Franchisee fails to open the Hotel by the date required under the Franchise Agreement, the Modular Incentive Key Money Amount payable to Franchisee will be reduced by $ each month or partial month delay in the Opening Date for the Hotel.
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 Term Sheet outlines the principal business terms for a proposed franchise agreement between the franchisee and franchisor for a hotel and its related facilities under the SpringHill Suites by Marriott brand. The Term Sheet includes details such as the number of guestrooms, the term length after the hotel opens as a branded hotel, the application fee, approval extension fee, franchise fees, program services contribution, and other fees and expenses. It also addresses the form of the franchise agreement, guaranty, restricted territory, and conversion requirements.
The Term Sheet also includes provisions regarding 'No Agreements with Other Parties,' where the franchisee represents they have the right to enter into the Term Sheet and Agreements, and that no conflicting third-party agreements exist. The Term Sheet establishes an 'Exclusivity' period during which the parties negotiate exclusively with each other for the franchise. It also covers 'Confidentiality,' ensuring that the terms and relationship between the parties, as well as information about the hotel, franchisee, and franchisor, remain confidential.
Furthermore, the Term Sheet includes 'Representations' by the franchisee, 'Governing Law' specifying that the laws of Maryland govern the Term Sheet, and details regarding 'Costs,' where each party bears its own expenses. It is explicitly stated that the Term Sheet is a non-binding expression of interest, except for the obligations related to 'No Agreement with Other Parties,' 'Exclusivity,' 'Confidentiality,' 'Representations,' 'Governing Law,' and 'Costs,' which are binding. The Term Sheet clarifies that it does not create a binding commitment to enter into the Agreements or any other transaction, nor does it establish a partnership, labor, agency, or fiduciary relationship.