Can the application fee paid to Delta Hotels By Marriott be commingled with other funds?

According to Delta Hotels By Marriott's 2025 Franchise Disclosure Document, the application fee can be commingled with other funds. Specifically, the FDD states that the application fee paid to Delta Hotels By Marriott may be invested, commingled with other funds, or otherwise used by Delta Hotels By Marriott as it deems appropriate.

This means that Delta Hotels By Marriott is not required to hold the application fee in a separate account or restrict its use in any way. Delta Hotels By Marriott has the discretion to use the application fee for its own business purposes, which could include operating expenses, investments, or other activities.

This is a fairly standard practice in the franchise industry. The application fee is typically used to cover the costs associated with processing and evaluating the application, and the franchisor generally has the right to use the funds as it sees fit. However, it is important to note that if a Franchise Agreement is not executed because the applicant does not acquire the hotel, Delta Hotels By Marriott will return the portion of the Application Fee actually paid for such hotel less Ten Thousand Dollars ($10,000) after confirming that all outside counsel fees and expenses associated with the transaction have been paid by the applicant.