Where is the 'Application Fee' defined within the Delta Hotels By Marriott Franchise Agreement?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
"Application Fee" is defined in Section 3.1.
"Franchise Fees" is defined in Section 3.2."
Source: Item 23 — RECEIPTS (FDD pages 134–251)
What This Means (2025 FDD)
According to the 2025 Delta Hotels By Marriott Franchise Disclosure Document, the 'Application Fee' is defined in Section 3.1. Additionally, Section 3.4 discusses various fees, charges, and costs, stating that the Franchise Fees and Application Fee are personal to the franchisee and as stated in the agreement. All other fees, charges, and costs under the agreement or any other Marriott agreement will be computed on a fair and consistent basis among similarly situated System Hotels.
The application process involves several forms and fees. Form 2 requires financial information for each hotel and proposed franchisee. Form 3 requires information about each franchisee and hotel owner. Form 4 requires details on whether the franchisee or a management company will manage the hotel. The Application Fee for each hotel is specified for each brand of hotels, with the exact amount detailed in the Application Letter (Form 1).
The FDD specifies that no fees of any kind may be paid in connection with an application until at least 10 business days after the date of the applicable Receipt. If the application is not approved, Delta Hotels By Marriott may return the Application Fee less $10,000 and their costs. However, if the application is approved for either a development agreement or a single-unit franchise agreement, the application fee will not be refunded. The franchisor will not enter into an agreement with the applicant until it receives full payment of the Application Fee.