Are there any exceptions to the mandatory nature of the fees for Springhill Suites By Marriott?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
UNLESS OTHERWISE NOTED, ALL PROGRAMS ARE MANDATORY, AND ALL FEES ARE MANDATORY, NON-REFUNDABLE, UNIFORMLY IMPOSED, PAYABLE ONLY TO US, AND IMPOSED AND COLLECTED BY US, AND ALL ARE SUBJECT TO CHANGE.
NOTE:
We may consider exceptions to our standard application fees and other initial fees in certain circumstances. Factors that we may consider include: (i) market penetration opportunities, (ii) the location, (iii) the size of the hotel, (iv) the economic and financial environment, (v) the cost to the franchisee to complete the conversion of an existing hotel, (vi) whether our reducing a portion of the fee would aid in the successful development or conversion of the hotel, (vii) whether the franchisee is willing to commit to playing an active role in growing the system, and (viii) any other relevant factors. These factors also may be taken into consideration in determining the amount of any fees charged in connection with a residential, condominium, or multi-family project.
- 3 In certain circumstances, we may consider reducing our monthly franchise fees to less than the standard amount, with the reduction typically decreasing over time and applying only in the first few years.
If the monthly franchise fees are less than the standard amount, we may also adjust the term of your franchise agreement.
In deciding whether to make such changes, we will consider, among other factors: (i) market penetration opportunities; (ii) the location and size of the hotel; (iii) the economic and financial environment; (iv) the cost to the franchisee to complete the conversion of an existing hotel; (v) whether our reducing a portion of the fees would aid in the successful development or conversion of the hotel; (vi) whether the franchisee is willing to commit to playing an active role in growing the system; and (vii) other relevant factors pertinent to the project and the system.
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, while most programs and fees are mandatory, non-refundable, uniformly imposed, payable only to Springhill Suites By Marriott, and subject to change, there are circumstances where exceptions to standard fees may be considered.
Springhill Suites By Marriott may consider exceptions to standard application fees and other initial fees based on factors such as market penetration opportunities, the hotel's location and size, the economic and financial environment, and the cost for the franchisee to complete a hotel conversion. Fee reductions may also be considered if they aid in the successful development or conversion of the hotel, or if the franchisee commits to actively growing the system. These considerations also apply when determining fees for residential, condominium, or multi-family projects associated with the hotel.
Additionally, Springhill Suites By Marriott may consider reducing monthly franchise fees below the standard amount, typically decreasing over time and applying only in the initial years of operation. If monthly franchise fees are reduced, the term of the franchise agreement may also be adjusted. This decision is based on factors such as market penetration opportunities, the hotel's location and size, the economic and financial environment, the cost to the franchisee to complete a conversion, and the potential for the fee reduction to aid in the hotel's development or conversion. The franchisee's willingness to actively participate in growing the system and other relevant factors are also considered.