Under the Springhill Suites By Marriott agreement, what is the Reimbursement Obligation defined as?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
Participant will reimburse Marriott for any costs associated with the relocation of people to other Marriott lodging products as a result of, or subsequent to, such people receiving such notice or in connection with providing the Services, including costs associated with relocating Marriott Bonvoy redemptions reservations.
Source: Item 17 — , "Renewal, Termination, Transfer, and Dispute Resolution," is amended by the addition of the following paragraph(s) at the conclusion of the Item: (FDD pages 285–553)
What This Means (2025 FDD)
According to Springhill Suites By Marriott's 2025 Franchise Disclosure Document, the reimbursement obligation relates to costs associated with relocating guests to other Marriott lodging products due to issues at the franchisee's hotel. Specifically, this obligation arises when Marriott needs to relocate guests with reservations or existing guests because of a non-crisis situation at the Springhill Suites By Marriott location.
The franchisee, referred to as the 'Participant' in this context, is responsible for covering any compensation required to resolve guest issues that necessitate relocation. This includes the costs associated with relocating Marriott Bonvoy redemption reservations. Marriott retains the authority to take necessary actions to ensure orderly guest experiences and hotel operations, and the franchisee consents to these actions.
For a prospective Springhill Suites By Marriott franchisee, this means they must be prepared to cover relocation and compensation costs if issues arise at their hotel that disrupt guest stays. These costs can vary depending on the number of guests affected, the alternative accommodations required, and any additional compensation needed to resolve guest dissatisfaction. It is important for franchisees to maintain high operational standards and address guest issues promptly to minimize the risk of incurring these reimbursement obligations.