What factors affect the ongoing costs of the MSP for a Delta Hotels By Marriott?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
es rendered. Marriott will not access, control or manage the FMN.
An on-property Wi-Fi network for the benefit of the hotel and guests is also required. The estimated cost to implement a Wi-Fi network meeting our Global Property Network Standards (GPNS) ranges from approximately $650 to $1,000 per guestroom. The ongoing cost of the Wi-Fi network is estimated to be approximately $2.50 to $8.50 per month per guestroom. These amounts are payable directl
Source: Item 10 — FINANCING (FDD pages 82–101)
What This Means (2025 FDD)
According to Delta Hotels By Marriott's 2025 Franchise Disclosure Document, franchisees must retain a third-party managed service provider (MSP) to support IT infrastructure, assist in cybersecurity incidents, ransomware detection, and endpoint security response, as well as manage pressing compliance and IT risk management situations. The FDD anticipates the initial cost to engage an MSP will be approximately $4,000. However, the ongoing costs for the MSP will vary depending on the specific MSP that the franchisee chooses and the services that they provide.
In essence, the ongoing costs are not fixed and are subject to the franchisee's choice of MSP and the scope of services negotiated. This means a Delta Hotels By Marriott franchisee has some control over these costs by carefully selecting an MSP that fits their operational needs and budget. However, it also introduces uncertainty, as different MSPs will offer varying service packages and pricing structures.
Prospective franchisees should carefully consider their IT support needs and obtain quotes from multiple MSPs to understand the potential range of ongoing costs. It would be prudent to discuss typical service levels and associated costs with existing Delta Hotels By Marriott franchisees to benchmark expectations. Additionally, franchisees should ensure that any MSP they consider aligns with Marriott's IT standards and security requirements to avoid future compliance issues or unexpected expenses.