Under what conditions can Springhill Suites By Marriott transfer the franchise agreement to other persons?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
7.2 Transfers by Franchisor.
- A. Transfer to Affiliates. Franchisor may Transfer this Agreement to any of its Affiliates that assume Franchisor's obligations to Owner and is reasonably capable of performing Franchisor's obligations, without prior notice to, or consent of, Owner.
- B. Transfer to Other Persons. Franchisor may Transfer this Agreement to any Person that assumes Franchisor's obligations to Owner, is reasonably capable of performing Franchisor's obligations, and acquires substantially all of Franchisor's rights for System Hotels, without prior notice to, or consent of, Owner. Owner agrees that any such Transfer will constitute a release of Franchisor and a novation of this Agreement.
- C. Franchisor's Successors and Assigns. This Agreement will be binding on and inure to the benefit of Franchisor and its permitted successors and assigns.
Source: Item 3 — Obligations of Guarantor. (FDD pages 257–265)
What This Means (2025 FDD)
According to the 2025 Springhill Suites By Marriott Franchise Disclosure Document, Springhill Suites By Marriott has the right to transfer the franchise agreement under specific conditions. Springhill Suites By Marriott can transfer the agreement to any of its affiliates without needing the owner's consent, provided the affiliate assumes Springhill Suites By Marriott's obligations and is capable of performing them.
Additionally, Springhill Suites By Marriott can transfer the agreement to another person if that person assumes Springhill Suites By Marriott's obligations to the owner, is reasonably capable of performing these obligations, and acquires substantially all of Springhill Suites By Marriott's rights for System Hotels. This transfer can occur without prior notice to or consent from the owner. The agreement specifies that such a transfer releases Springhill Suites By Marriott from its obligations, effectively creating a novation of the agreement.
These stipulations are typical in franchising, allowing the franchisor flexibility in managing its business while ensuring the franchisee's interests are protected by requiring the new party to be capable of fulfilling the franchisor's obligations. A prospective Springhill Suites By Marriott franchisee should understand these terms, as they define the circumstances under which the agreement could be transferred to a different entity, potentially impacting their relationship and operational requirements.