Under what conditions will Springhill Suites By Marriott refund the $10,000 extension fee?

According to Springhill Suites By Marriott's 2025 Franchise Disclosure Document, a franchisee may seek to extend their hotel opening deadline after construction has started, or to extend a construction start deadline after automatic extensions have been frozen. To do so, the franchisee must submit a written request and pay a $10,000 extension fee. This fee covers the franchisor's consideration of the extension request.

However, Springhill Suites By Marriott will refund the $10,000 extension fee if they do not approve the franchisee's request for an extension. This implies that the franchisor has the right to deny an extension request, even after the fee has been paid. The FDD stipulates that no extension will be granted for more than six months, suggesting that requests exceeding this duration are likely to be denied.

This policy has important implications for prospective franchisees. It highlights the importance of accurate project planning and realistic timelines. Franchisees should carefully assess their construction capabilities and potential delays before starting the project. While the possibility of obtaining an extension exists, it is not guaranteed, and the $10,000 fee is at risk if the request is denied. Franchisees should factor this potential cost into their budget and consider it a non-refundable expense unless the extension is not granted.