Is the Application Fee for a Delta Hotels By Marriott franchise refundable?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
greements attached to the FDD).
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- Applicant acknowledges and agrees that:
- (a) Applicant is submitting this Application either as the person or entity that will sign one or more Agreements, or as the person or entity that will control the proposed franchisee or area developer for each hotel, as applicable.
- (b) Franchisor reserves the right to approve or deny this Application with respect to one or more hotels, in its sole discretion. Applicant will not acquire any rights by v
Source: Item 23 — RECEIPTS (FDD pages 134–251)
What This Means (2025 FDD)
According to Delta Hotels By Marriott's 2025 Franchise Disclosure Document, the application fee's refundability depends on whether the application is approved. If Delta Hotels By Marriott does not approve the application for a single-unit franchise agreement, they will return the application fee, but will deduct $10,000 and their costs. However, if the application for either a development agreement or a single-unit franchise agreement is approved, the application fee is non-refundable. This policy is designed to compensate Delta Hotels By Marriott for the time and expenses incurred in processing the application.
Additionally, if an applicant and Delta Hotels By Marriott have not executed a franchise agreement within 60 days after the issuance of the first draft of the franchise agreement, Delta Hotels By Marriott may withdraw its approval unless the applicant pays an application extension fee of $10,000. If a franchise agreement is still not executed within 60 days after the extension, Delta Hotels By Marriott can withdraw its approval of the hotel.
Furthermore, approval of the application is conditional on the applicant maintaining legal control over the specific site described in the application. If the applicant loses legal control over the site before the franchise agreement is executed, Delta Hotels By Marriott's approval becomes ineffective, and the application fee will be retained by Delta Hotels By Marriott. This condition underscores the importance of securing the site before applying for a Delta Hotels By Marriott franchise.