For Delta Hotels By Marriott, what do the costs and expenses of a Program include, without limitation?
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.
- 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.
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 Delta Hotels By Marriott's 2025 Franchise Disclosure Document, the costs and expenses of a Program include, without limitation, several components. These include the wages, benefits, and bonuses of the Program associates. Additionally, the costs encompass controllables such as startup expenses, rent, office supplies, postage, telephone expenses, travel expenses, training, and entertainment. The costs also account for the depreciation of capital expenditures, including computer systems, office furniture, and facilities, which are categorized as "Operating Costs".
The hotel's share of these Program costs, including the Operating Costs, will be allocated and invoiced to the franchisee each month. This means that franchisees can expect to see these charges as a recurring monthly expense. It is important for prospective franchisees to understand that these costs are in addition to the initial investment and other ongoing fees associated with operating a Delta Hotels By Marriott franchise.
Delta Hotels By Marriott may periodically evaluate the allocation methodologies used to determine each hotel's share of the costs. If Marriott identifies a better allocation basis or methodology, they may adopt it at their sole discretion. Any such change will be communicated to the participating hotels, including the Hotel, and shall be applied without need to formally modify this Agreement. This flexibility allows Delta Hotels By Marriott to adjust cost allocations as needed to reflect changes in the market or the performance of individual hotels.