Is an application fee required when applying for a Delta Hotels By Marriott franchise?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
- i Franchise Disclosure Document Receipts. If you have not already done so, please sign and date the receipts included at the back of each Franchise Disclosure Document provided to you and, in the case of a paper version of the Franchise Disclosure Document, return one to us for our records.
- ii This signed and dated Application Letter.
- iii Application Forms I IV.
- iv Application Fee. The following single-unit franchise agreement application fee or development fee (an "Application Fee") for each proposed hotel under this Application:
7. APPLICABLE BRAND AND APPLICATION FEE
The Application Fee (payable in US Dollars) for each hotel subject to this Application is set forth below for each brand of hotels unless otherwise indicated in the Application Letter (Form 1):
"Hotel Brand" : The greater of $xxx,xxx or $xxx per guestroom
No fees of any kind may be paid to us in connection with an application until at least 10 business days after the date of the applicable Receipt.
Ladies/Gentlemen:
This application letter, along with our Application Fee payment (in US Dollars) is furnished to MIF, L.L.C. ("Franchisor") in order to induce Franchisor to process the application of the undersigned for the hotel(s) listed in Schedule A.
(d) An Application Fee will be paid to Franchisor via wire transfer no earlier than 10 business days after Applicant has received a Franchise Disclosure Document.
i For single-unit franchise agreements, if Franchisor does not approve the Application for the hotel, it shall have no liability to Applicant for such hotel other than to return the Application Fee for the hotel, less Ten Thousand Dollars ($10,000) and Franchisor's costs.
ii If the application for a development agreement or a single-unit franchise agreement is approved, the application fee for the hotel will not be refunded.
iii MSB Only: If Applicant and Franchisor have not executed a franchise agreement for the hotel within sixty (60) days after the issuance of the first draft of the franchise agreement for the hotel, Franchisor may withdraw its approval of the Application with respect to such hotel unless applicant pays an application extension fee of Ten Thousand Dollar ($10,000).
Source: Item 23 — RECEIPTS (FDD pages 134–251)
What This Means (2025 FDD)
Yes, according to the 2025 Franchise Disclosure Document, an application fee is required when applying for a Delta Hotels By Marriott franchise. Specifically, the document mentions that the application consists of several materials, including an application fee for each proposed hotel. The application fee is for either a single-unit franchise agreement or a development fee. The exact amount of the application fee for a Delta Hotels By Marriott franchise is not specified in the provided excerpts but is indicated as "The greater of $xxx,xxx or $xxx per guestroom".
Prospective Delta Hotels By Marriott franchisees should note that this application fee is payable in U.S. dollars. Furthermore, the FDD states 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 of the Franchise Disclosure Document. This provides a waiting period for the applicant to review the FDD before paying any fees.
The application fee can be transferred via wire payment to the Bank of New York Mellon, with specific ABA, Swift, account name, and account number details provided in the document. The reference for the wire transfer should include "App Fee - Unit #: FDD Example". The application letter, along with the application fee payment, is furnished to induce the franchisor, MIF, L.L.C., to process the application.
It is important for potential Delta Hotels By Marriott franchisees to note that if the application is not approved, the franchisor's liability is limited to returning the application fee, less $10,000 and the franchisor's costs, for single-unit franchise agreements. However, if the application for a development agreement or a single-unit franchise agreement is approved, the application fee is non-refundable. Additionally, if a franchise agreement is not executed within 60 days after the issuance of the first draft, the franchisor may withdraw approval unless an application extension fee of $10,000 is paid.