How does Delta Hotels By Marriott charge the monthly service fee, and is it pro-rated?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor will charge Franchisee a fee for each month on the first day of the month for the Services as set forth in Schedule "B" to this Agreement, which shall be pro-rated for any partial month for which the Services are performed.
Source: Item 7 — Franchisor reserves the right to challenge the applicability of any law that declares provisions in the Agreement void or unenforceable. (FDD pages 288–363)
What This Means (2025 FDD)
According to the 2025 Delta Hotels By Marriott Franchise Disclosure Document, the monthly service fee is charged on the first day of each month, as detailed in Schedule B of the agreement. The fees are pro-rated for any partial month in which the services are provided. This means a new franchisee will only pay for the portion of the month they are actively receiving services.
For example, the annual fee for Tier V Revenue Management Advisory Services is $76,099.98 USD, which is billed in monthly installments of $6,341.67 USD. If a franchisee only receives services for half a month, they would be charged half of the $6,341.67 USD. Similarly, the annual fee for Tier V Extended Hours Support is $1,032 USD, billed monthly at $86 USD, and this would also be pro-rated for partial months.
This pro-ration policy benefits new Delta Hotels By Marriott franchisees by reducing their initial costs and aligning fees with the actual services received during the ramp-up period. It also ensures fairness if a franchisee terminates the agreement mid-month, as they would not be charged for the full month's services. Franchisees should carefully review Schedule B of their agreement to understand the specific fees applicable to their chosen service tiers and ensure they are correctly pro-rated for partial months.