For Delta Hotels By Marriott, what are the components of the monthly end review?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
- b. Costs and expenses of a Program shall include, without limitation, wages, benefits, and bonuses of the Program associates, as well as controllables such as startup expenses, rent, office supplies, postage, telephone expenses, travel expenses, training, entertainment, and depreciation of capital expenditures such as computer systems, and office furniture and facilities (the "Operating Costs"). The Hotel's share of the costs of the Programs, including but not limited to the Operating Costs, will be allocated and invoiced to Franchisee each month.
- c. Franchisee shall make payment in compliance with the terms of each invoice, Shared Service Agreement, and the Franchise Agreement.
- d. Marriott may periodically evaluate the allocation methodologies set forth above in Attachment A and/or Exhibits attached thereto. Should another allocation basis or methodology be identified that better reflects each participating hotel's share of the costs, as deemed by Marriott in its sole discretion, this basis and/or methodology may be adopted. Any such change will be communicated to the participating hotels, including the Hotel, and shall be applied without need to formally modify this Agreement.
- 4. Addition or Withdrawal of Hotel from Market. If a hotel is added as a participant in one or more Programs, the percentage share of the costs of such Program for each of the other hotels in the Market may be adjusted proportionately by the new hotel's share of such costs, if deemed practicable by Marriott, as determined in accordance with this Agreement. If a hotel withdraws as a participant in the Shared Service, the percentage share of the costs of the Shared Service for each of the other participating hotels may be adjusted proportionately by the non-participating hotel's share of such costs, if deemed practicable by Marriott, as determined in accordance with this Agreement.
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)
Based on the 2025 Franchise Disclosure Document, the Delta Hotels By Marriott franchise provides details regarding the allocation of costs and expenses for its programs. Specifically, the hotel's share of program costs, including operating costs, will be allocated and invoiced to the franchisee each month. These operating costs encompass wages, benefits, bonuses of program associates, startup expenses, rent, office supplies, postage, telephone expenses, travel expenses, training, entertainment, and depreciation of capital expenditures like computer systems, office furniture, and facilities. Franchisees are required to make payments in compliance with the terms outlined in each invoice, Shared Service Agreement, and the Franchise Agreement.
Delta Hotels By Marriott may periodically evaluate the allocation methodologies to ensure they accurately reflect each participating hotel's share of the costs. Any changes to the allocation basis or methodology will be communicated to the participating hotels and applied without needing formal modification to the agreement. If a hotel is added to or withdraws from a program, the percentage share of costs for the remaining hotels may be adjusted proportionately, as deemed practicable by Marriott.
While the FDD details how costs are allocated and invoiced monthly, it does not explicitly describe the components of a 'monthly end review.' A prospective franchisee should seek clarification from Delta Hotels By Marriott regarding what specific data, reports, or metrics are included in this review to fully understand the financial and operational oversight involved.