Under the Springhill Suites By Marriott Guaranty Agreement, what is the definition of 'MICC'?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
Prior to remitting to Company or any of its [members / partners/ shareholders] any remittance amount under the Management Agreement, you are hereby directed to pay to Marriott International Capital Corporation ("MICC") any funds to be otherwise remitted to Company and/or its [members / partners/ shareholders] under the Management Agreement. All payments are to be made to Marriott International Capital Corporation, at 7750 Wisconsin Avenue, Department 52/924.11, Bethesda, Maryland 20814, Attention: Treasury Department, Reference: [property brand and location].
Company knowingly and voluntarily gives the foregoing irrevocable directions to Manager for the benefit of MICC. These directions may not be rescinded, amended or modified without the prior written consent of MICC. Company agrees that these directions do not modify, diminish or affect any of its or any [member's / partner's/ shareholder's] liabilities to MICC.
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 the 2025 Springhill Suites By Marriott Franchise Disclosure Document, MICC is defined as Marriott International Capital Corporation. The FDD specifies that prior to remitting any amount under the Management Agreement to the Company or its members/partners/shareholders, the franchisee is directed to pay Marriott International Capital Corporation any funds otherwise remitted to the Company. All payments are to be made to Marriott International Capital Corporation, at 7750 Wisconsin Avenue, Department 52/924.11, Bethesda, Maryland 20814, Attention: Treasury Department, Reference: [property brand and location].
This instruction is knowingly and voluntarily given by the Company to the Manager for the benefit of MICC and cannot be rescinded, amended, or modified without MICC's prior written consent. The Company also agrees that these directions do not modify, diminish, or affect any of its or any member's/partner's/shareholder's liabilities to MICC.
This arrangement ensures that Marriott International Capital Corporation receives payments before other parties, providing a level of financial security for MICC. As a prospective franchisee, it's crucial to understand the implications of this arrangement and how it affects the financial obligations and relationships between the franchisee, the Company, and MICC.