What is the total Program Services Contribution for Springhill Suites By Marriott, considering all components?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
We have established a program services contribution to cover the cost of certain programs, systems, and services ("Program Services Contribution"), including: (a) advertising, sales and marketing, promotion programs and related research that are funded through the Marketing Fund described in Item 11; (b) a reservation system; (c) the ongoing cost of certain electronic systems, including a yield management system, our support of a property management system, our support of a guest feedback tracking and management system, certain costs associated with the mobile key component of the hotel's guestroom lock system, a digital guest services system, an electronic customer folio delivery system, a virtual private network, the provision of a limited number of hotel-based Marriott.com email addresses, an intranet website supplying information such as standards and quality assurance information, the MDash system, our support of encrypted payment processing, a guest experience platform, and a web-based tool that generates discount forms and cards for associates; (d) a guest satisfaction survey system and an annual audit under the Audit Program; (e) a centralized travel agent commission processing program; and (f) one license for the Marriott Environmental Sustainability Hub ("MESH").
Except as designated by us, the Program Services Contribution generally does not cover costs, expenses or fees for any other programs, systems, or services, including without limitation: (i) the purchase or installation of, or training for, systems for your hotel (including new or replacement systems); (ii) revenue management services; (iii) technology and systems security; or (iv) hotel employee training. Costs paid by the Program Services Contribution include our costs of development, maintenance and support, management, oversight, administration, salaries, and overhead (including collection and accounting). If we provide capital for a project to change or develop new systems covered by the Program Services Contribution, we may recover the capital invested as well as costs incurred by us to finance such invested capital. We may spend all of the contributions in the year collected or carry forward excess contributions into future years. If expenditures exceed amounts collected, we may make loans to cover the shortfalls (and may treat each loan (and any
Source: Item 6 — B. Other Fees That May Apply to Your Transaction (FDD pages 32–64)
What This Means (2025 FDD)
I am unable to calculate the total Program Services Contribution for Springhill Suites By Marriott using the provided FDD excerpts. While the 2025 FDD mentions a Program Services Contribution, it does not specify the exact amount or a formula for calculating it. The document outlines what the contribution covers, such as advertising, reservation systems, electronic systems, guest satisfaction surveys, and travel agent commission processing. It also states that Springhill Suites By Marriott may change the contribution amount or the costs covered at any time.
Additionally, the FDD indicates that the Program Services Contribution may be combined with those of other Company Brands, and not all franchisees may benefit equally from these contributions. The costs covered include development, maintenance, support, management, administration, salaries, and overhead. Springhill Suites By Marriott may also recover capital invested in new systems through these contributions.
To fully understand the financial implications, a prospective franchisee should ask Springhill Suites By Marriott for a detailed breakdown of the Program Services Contribution, including the current amount, how it is calculated, and how it may change over time. Understanding how these funds are allocated and what specific benefits the franchisee can expect is crucial for making an informed investment decision.