Is there any circumstance under which the Springhill Suites By Marriott application fee is refundable?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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.
iii MSB Only: If Applicant and Franchisor have not executed a franchise agreement for the hotel within sixty (60) days after the issuance of the first draft of the franchise agreement for the hotel, Franchisor may withdraw its approval of the Application with respect to such hotel unless applicant pays an application extension fee of Ten Thousand Dollar ($10,000).
v If the Application is approved for a hotel, such approval is conditioned on Applicant retaining legal control over the specific site described in the Application.
If at any time prior to execution of the Franchise Agreement, Applicant loses legal control over the site of the hotel, our approval of the Application with respect to the hotel will no longer be effective.
In such event, Franchisor shall have no liability to Applicant and the full Application Fee for the hotel will be retained by Franchisor*,* and Franchisor will withdraw its approval of the hotel.
Source: Item 23 — RECEIPTS (FDD pages 139–206)
What This Means (2025 FDD)
According to the 2025 Springhill Suites By Marriott Franchise Disclosure Document, the application fee is generally non-refundable. However, there is a specific circumstance where a partial refund may be available. If Springhill Suites By Marriott does not approve the application for a single-unit franchise agreement, they may return the application fee, but will deduct $10,000 and any costs they incurred. If the application is for a development agreement or a single-unit franchise agreement that is approved, the application fee will not be refunded.
It's important to note that even if Springhill Suites By Marriott initially approves an application, this approval is contingent on the applicant maintaining legal control over the proposed site. If the applicant loses legal control of the site before the franchise agreement is executed, Springhill Suites By Marriott will withdraw its approval, retain the entire application fee, and have no further liability to the applicant. Should the applicant regain control of the site later, a new application and fee are required.
Furthermore, if a franchise agreement is not executed within sixty days after the first draft is issued, Springhill Suites By Marriott may withdraw approval unless the applicant pays a $10,000 application extension fee. If no agreement is reached within sixty days after the extension, Springhill Suites By Marriott can withdraw its approval. These conditions highlight the importance of securing site control and promptly finalizing the franchise agreement to avoid losing the application fee.
Prospective Springhill Suites By Marriott franchisees should carefully consider these conditions and ensure they understand the circumstances under which the application fee may or may not be refunded. It is advisable to maintain clear communication with Springhill Suites By Marriott throughout the application process and to seek legal counsel to fully understand the terms and conditions of the franchise agreement.