What factors does Delta Hotels By Marriott rely on when entering into a franchise agreement?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
ior Representations.* Franchisee represents and warrants that all of the representations, warranties and information in the application and provided for this Agreement were true as of the time made and are true as of the Effective Date, regardless of whether such representations, warranties and information were provided by Franchisee or another Person.
- D. Restricted Person; Competitor. Franchisee represents and warrants, and will ensure throughout the Term, that (i) neither Franchisee, nor the Person(s) that Control Franchisee, nor any of its or the Hotel's funding sources is a Restricted Person and (ii) neither Franchisee nor any of its Affiliates is a Competitor.
- E. Ownership of Franchisee. Franchisee represents and warrants that the information in Attachment Two to Exhibit A regarding its Interestholders is complete and accurate. Upon any Transfer that requires notice to, or the consent of, Franchisor under Section 17, or on request of Franchisor, Franchisee will provide a list of the names and addresses of the Interestholders and documents necessary to confirm such information and update Attachment Two to Exhibit A.
- F. Ownership of the Hotel. Unless otherwise stated in Item 17 of Exhibit A, Franchisee represents and warrants that either: (i) it is the sole owner of the Hotel and holds good and marketable fee title to the Approved Location; or (ii) the Approved Location is subject to a valid purchase, contribution, or similar agreement, and on closing of such agreement, Franchisee will be the sole owner of the Hotel and will hold good and marketable fee title to the Approved Location. Unless the Hotel is subject to a lease as indicated in Item 17 of Exhibit A, Franchisee will deliver a copy of the recorded deed in Franchisee's name to Franchisor no later than the Construction Start Deadline.
26.2 Additional Franchisee Acknowledgments and Representations.
- A. NO RELIANCE. IN ENTERING THIS AGREEMENT, FRANCHISEE REPRESENTS AND WARRANTS THAT IT DID NOT RELY ON, AND NEITHER FRANCHISOR NOR ANY OF ITS AFFILIATES HAS MADE, ANY PROMISES, REPRESENTATIONS, WARRANTIES OR AGREEMENTS RELATING TO THE FRANCHISE, THE HOTEL, OR THE APPROVED LOCATION OR THE SYSTEM, UNLESS CONTAINED IN THIS AGREEMENT.
- B. BUSINESS RISK. FRANCHISEE AGREES THAT THE BUSINESS VENTURE CONTEMPLATED BY THIS AGREEMENT INVOLVES SUBSTANTIAL BUSINESS RISK, IS A VENTURE WITH WHICH FRANCHISEE HAS RELEVANT EXPERIENCE AND ITS SUCCESS IS LARGELY DEPENDENT ON FRANCHISEE'S ABILITY AS AN INDEPENDENT BUSINESS. FRANCHISOR DISCLAIMS THE MAKING OF, AND FRANCHISEE AGREES IT HAS NOT RECEIVED, ANY INFORMATION, WARRANTY OR GUARANTEE, EXPRESS OR IMPLIED, AS TO THE POTENTIAL REVENUES, PROFITS OR SUCCESS OF SUCH BUSINESS VENTURE. IF,
PRIOR TO THE EFFECTIVE DATE, FRANCHISOR HAS FURNISHED ANY HISTORICAL PERFORMANCE DATA OR PROJECTIONS WITH RESPECT TO THE HOTEL IN CONNECTION WITH THE POSSIBILITY OF FRANCHISOR OR ITS AFFILIATES MANAGING THE HOTEL (AS OPPOSED TO GRANTING A FRANCHISE TO FRANCHISEE), FRANCHISEE ACKNOWLEDGES AND AGREES THAT SUCH DATA AND PROJECTIONS ARE NOT APPLICABLE TO A FRANCHISED SYSTEM HOTEL AND THAT IT HAS NOT RELIED THEREON IN ENTERING INTO THIS AGREEMENT.
Source: Item 23 — RECEIPTS (FDD pages 134–251)
What This Means (2025 FDD)
Based on the 2025 Delta Hotels By Marriott Franchise Disclosure Document, the franchisor requires franchisees to acknowledge several key representations and warranties when entering into a franchise agreement. Delta Hotels By Marriott requires that franchisees acknowledge that they are not relying on any promises, representations, warranties, or agreements outside of what is contained in the franchise agreement itself. This means that any prior discussions or understandings not explicitly written into the agreement are not binding.
Delta Hotels By Marriott also requires franchisees to acknowledge the substantial business risk involved in the venture and affirm that their success depends largely on their own abilities as independent business operators. Delta Hotels By Marriott disclaims any guarantees regarding potential revenues, profits, or the success of the business. Furthermore, if any historical performance data or projections were provided in connection with potential management of the hotel by Delta Hotels By Marriott or its affiliates, the franchisee acknowledges that this data is not applicable to a franchised system hotel and that they have not relied upon it in entering the agreement.
Delta Hotels By Marriott also requires that the franchisee represents and warrants that no agreement or other arrangement exists that would prohibit or conflict with the franchisee's ability to enter into the agreement or perform its obligations. All representations, warranties, and information provided in the application must be true as of the time they were made and as of the effective date of the agreement. The franchisee must also warrant that neither they, nor the persons that control them, nor any of the hotel's funding sources are a restricted person and that neither the franchisee nor any of its affiliates is a competitor. Delta Hotels By Marriott also requires the franchisee to provide complete and accurate information regarding its interest holders and to update this information as necessary.