Under what conditions can Marriott terminate the Springhill Suites By Marriott franchise agreement?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE OR OTHER AGREEMENT | SUMMARY1 | |
|---|---|---|---|
| a. | Length of the franchise term | Section 2.1and Exhibit A – Item 4 | For a new-build hotel, the term of the franchise agreement typically ends on the 20th anniversary after the date we authorize the hotel to open as a SpringHill Suites by Marriott hotel. If you are acquiring an existing hotel or renewing a franchise agreement, the term is typically less than 20 years and will depend on the remaining term of any franchise agreement for the hotel, the location and condition of the hotel, and scope of the PIP. |
| b. | Renewal or extension of the term | Section 2.2 | The franchise agreement is not renewable, and you should not have any expectation that you will be granted any right to operate the hotel under our brand after the expiration of the term.2 |
| c. | Requirements for franchisee to renew or extend | Not Applicable | |
| d. | Termination by franchisee | Not Applicable3,4 (subject to applicable state law) | |
| e. | Termination by franchisor without cause | Not Applicable4 | |
| f. | Termination by franchisor with cause | Sections 17.5.A and 19 | We can terminate if (i) you fail to cure any curable default or there exists any non-curable default or (ii) you or an affiliate of yours sell(s) or lease(s) the hotel to, or become(s), a Competitor, or you transfer your interests in the agreement or any interest in you or your affiliates to a Competitor. |
| g. | "Cause" defined-curable defaults | Section 19.2 | You have 30 days to cure: failure to timely start and complete construction/conversion, renovation/repair, or open the hotel; failure to pay amounts due; default of any other agreement(s) entered into between us and you; if you or any owner, officer, director, or employee is convicted of a serious crime or is |
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 107–117)
What This Means (2025 FDD)
According to the 2025 Springhill Suites By Marriott Franchise Disclosure Document, Marriott can terminate the franchise agreement with cause under specific circumstances. These circumstances include failure to cure any curable default or the existence of any non-curable default. Additionally, Marriott can terminate the agreement if the franchisee or an affiliate sells or leases the hotel to, or becomes, a competitor, or if the franchisee transfers their interests in the agreement or any interest in them or their affiliates to a competitor.
The FDD also specifies that a curable default allows the franchisee a 30-day period to rectify the issue. Examples of curable defaults include failure to start and complete construction/conversion, renovation/repair, or open the hotel on time, failure to pay amounts due, and default of any other agreements between Marriott and the franchisee. Furthermore, if any owner, officer, director, or employee is convicted of a serious crime, this can also lead to termination.
It is important for prospective Springhill Suites By Marriott franchisees to understand these termination conditions, as they outline the situations in which Marriott can end the franchise agreement. This knowledge helps franchisees to ensure they operate within the bounds of the agreement and avoid potential termination. Understanding the definitions of 'curable' and 'non-curable' defaults is crucial for maintaining a healthy franchise relationship and protecting their investment.