Is the extension fee for Delta Hotels By Marriott refundable, and if so, under what conditions?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
C. Extensions.
- (i) Time is of the essence, but the Construction Start Deadline will be automatically extended by 30 days on a rolling basis, unless Franchisor provides at least 60 days' notice to Franchisee that such deadline will no longer be automatically extended. Any such automatic extension of the Construction Start Deadline will extend the Opening Deadline by the same amount of time; however, no such automatic extension will extend the term or duration of any Restricted Territory in Item 9 of Exhibit A.
- (ii) If Franchisee wishes to further extend such deadlines following Franchisor's notice in the preceding paragraph, or if Franchisee wishes to extend the Opening Deadline after construction of the Hotel has commenced, Franchisee will make a written request giving the reasons for the delay. If the delay is caused by a Force Majeure Event (excluding, for the avoidance of doubt, unavailability of financing), Franchisor will equitably extend such deadlines. If the delay is not caused by a Force Majeure Event, Franchisor may, in its sole discretion, extend such deadlines and require Franchisee to pay its then-current extension fee. The extension fee is nonrefundable unless
Franchisor declines to grant the requested extension. No extension under this Section 2.C.(ii) will be granted for more than six months.
Source: Item 23 — RECEIPTS (FDD pages 134–251)
What This Means (2025 FDD)
According to Delta Hotels By Marriott's 2025 Franchise Disclosure Document, under certain conditions, an extension fee may be required to extend construction or opening deadlines. If a franchisee seeks to extend deadlines after receiving notice from Delta Hotels By Marriott that automatic extensions will cease, or if they want to extend the opening deadline after construction has begun, they must submit a written request explaining the reasons for the delay.
If the delay is due to a Force Majeure Event (excluding unavailability of financing), Delta Hotels By Marriott will grant an equitable extension. However, if the delay is not caused by a Force Majeure Event, Delta Hotels By Marriott has the discretion to grant an extension and may require the franchisee to pay an extension fee.
The extension fee is nonrefundable unless Delta Hotels By Marriott declines to grant the requested extension. No extension will be granted for more than six months. This means that if Delta Hotels By Marriott approves the extension, the fee is nonrefundable, but if they deny the extension request, the fee will be refunded to the franchisee.