How does the commencement date affect the initial term of the Delta Hotels By Marriott agreement?

According to the 2025 Delta Hotels By Marriott Franchise Disclosure Document, the commencement date of the agreement significantly influences the length of the initial term. Specifically, the initial term's expiration is determined by when the commencement date falls within the calendar year. This means the start date of your franchise can affect the length of your initial term with Delta Hotels By Marriott.

If the commencement date falls between January 1st and June 30th, the initial term will expire on December 31st of the same year. However, if the commencement date is between July 1st and December 31st, the initial term extends until December 31st of the following year. For example, the FDD states that if the commencement date is November 5, 2019, the initial term expires on December 31, 2020.

This structure means that a Delta Hotels By Marriott franchisee starting in the latter half of the year will effectively receive a longer initial term compared to one starting in the first half. After the initial term, the agreement automatically renews for successive one-year terms unless either party provides written notice of non-renewal at least 90 days before the current term's expiration. This renewal structure is fairly standard in franchising, providing a predictable framework for both the franchisee and franchisor.