When is the Accounting Audit fee due to Delta Hotels By Marriott?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE* | REMARKS |
|---|---|---|---|
| Accounting Audit | The amount of the underpayment plus interest if an audit reveals an underpayment | On demand | If an audit reveals an underpayment of 5% or more, or if an audit reveals that accounting procedures are insufficient to accurately determine payments due, then you must reimburse us for all costs in connection with the audit. |
Source: Item 1 — Fees for Other Services (FDD pages 39–71)
What This Means (2025 FDD)
According to Delta Hotels By Marriott's 2025 Franchise Disclosure Document, the Accounting Audit fee is due 'on demand.' This means that if Delta Hotels By Marriott conducts an audit and discovers an underpayment of fees by the franchisee, the franchisee is required to pay the underpayment amount, plus interest, immediately upon receiving the demand for payment.
Furthermore, if the audit reveals an underpayment of 5% or more, or if the audit indicates that the franchisee's accounting procedures are insufficient to accurately determine payments due to Delta Hotels By Marriott, the franchisee must also reimburse Delta Hotels By Marriott for all costs associated with the audit itself. This could include expenses for the auditors, legal fees, and other related costs.
This policy incentivizes franchisees to maintain accurate and transparent accounting practices and to ensure timely and correct payments to Delta Hotels By Marriott. The 'on demand' payment term means franchisees need to be prepared to address any discrepancies found during an audit promptly to avoid additional interest and audit-related expenses.