Which sections of the Springhill Suites By Marriott agreement survive the expiration or termination of the agreement?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.7 Survival. The terms of Sections 1, 5, 9, 10 and 12 of this Agreement, and, to the extent applicable to Owner, Section 27.8 of the Franchise Agreement, survive expiration or termination of this Agreement.
Source: Item 11 — FINANCING OF THE HOTEL (FDD pages 265–285)
What This Means (2025 FDD)
According to Springhill Suites By Marriott's 2025 Franchise Disclosure Document, specific sections of the agreement continue to be in effect even after the agreement expires or is terminated. These sections are 1, 5, 9, 10, and 12. Additionally, Section 27.8 of the Franchise Agreement remains in effect to the extent that it applies to the Owner.
These surviving clauses likely address matters such as ongoing obligations, intellectual property protection, confidentiality, or dispute resolution that need to extend beyond the active term of the franchise agreement. For example, clauses related to the use of Springhill Suites By Marriott's trademarks or trade secrets often survive termination to prevent misuse by the former franchisee.
A prospective Springhill Suites By Marriott franchisee should carefully review these sections to understand their obligations and rights after the franchise agreement ends. It is important to know what responsibilities and restrictions will continue to apply, as these can significantly impact their future business activities. Consulting with a legal professional to fully understand the implications of these survival clauses is advisable.