Does submitting an application for a Springhill Suites By Marriott franchise guarantee any rights to the applicant?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
Applicant will not acquire any rights by virtue of the submission of the Application whether or not Franchisor approves the Application.
Any expenses incurred by or on behalf of Applicant in connection with this Application or any approval of this Application (including without limitation any costs of constructing, renovating or operating the proposed hotel(s)) are at Applicant's sole risk and are not being made in reliance on any action of Franchisor.
Franchisor does not enter into oral agreements or understandings with respect to franchises or matters pertaining to the grant of a franchise.
Accordingly, there are no agreements or understandings whatsoever between Applicant and Franchisor with respect to the Application or any franchise.
An Application Fee will be paid to Franchisor via wire transfer no earlier than 10 business days after Applicant has received a Franchise Disclosure Document.
The fee may be invested, commingled with other funds of Franchisor or otherwise used by Franchisor, as it deems appropriate in its discretion.
Franchisor will not enter into an Agreement with Applicant until it receives full payment of the Application Fee.
For each proposed hotel under this Application:
i For single-unit franchise agreements, if Franchisor does not approve the Application for the hotel, it shall have no liability to Applicant for such hotel other than to return the Application Fee for the hotel, less Ten Thousand Dollars ($10,000) and Franchisor's costs.
ii If the application for a development agreement or a single-unit franchise agreement is approved, the application fee for the hotel will not be refunded.
Source: Item 23 — RECEIPTS (FDD pages 139–206)
What This Means (2025 FDD)
According to Springhill Suites By Marriott's 2025 Franchise Disclosure Document, submitting an application does not guarantee any rights to the applicant. Springhill Suites By Marriott retains the right to approve or deny the application at its sole discretion. The applicant bears all risks and expenses incurred during the application process, including construction, renovation, or operation costs, and these are not contingent on any action by Springhill Suites By Marriott.
Springhill Suites By Marriott explicitly states that there are no oral agreements or understandings regarding the franchise grant. The application fee, which is paid via wire transfer after the applicant receives the Franchise Disclosure Document, can be used by Springhill Suites By Marriott as it sees fit. Springhill Suites By Marriott will not finalize any agreement until the application fee is paid in full.
If Springhill Suites By Marriott denies the application for a single-unit franchise agreement, its only liability is to return the application fee, minus $10,000 and any costs incurred by Springhill Suites By Marriott. However, if the application for a development agreement or a single-unit franchise agreement is approved, the application fee will not be refunded. Furthermore, approval is contingent on the applicant maintaining legal control over the specified site; loss of control renders the approval ineffective, and Springhill Suites By Marriott will retain the application fee without liability.