Does the Delta Hotels By Marriott FDD include a statement of income?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised Delta Hotels by Marriott hotels. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet.
For each full or partial calendar or fiscal year (whichever is used by Franchisee for income tax purposes), Franchisee will prepare and provide to Franchisor a complete statement of income and expense from the operation of the Hotel for the preceding year, including an accounting for the Reserve. This statement is due within 90 days after each year. This statement will be prepared in accordance with the Uniform System and the United States generally accepted accounting principles, consistently applied, Applicable Law, the Standards, and the Uniform System "Income Statement" with standard line items specified by Franchisor, and Franchisee will provide such supporting documentation and other information that Franchisor may require relating to this statement.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 132)
What This Means (2025 FDD)
According to the 2025 Delta Hotels By Marriott FDD, Item 19 states that the franchisor does not make any representations about a franchisee's future financial performance, nor do they provide information on the past financial performance of company-owned or franchised Delta Hotels By Marriott hotels. However, if a prospective franchisee is purchasing an existing outlet, Delta Hotels By Marriott may provide the actual records of that specific outlet.
Item 23 outlines the statements and reports that a franchisee must provide to Delta Hotels By Marriott. Specifically, for each full or partial calendar or fiscal year, the franchisee will prepare and provide a complete statement of income and expense from the operation of the hotel for the preceding year, including an accounting for the Reserve. This statement is due within 90 days after each year and must be prepared in accordance with the Uniform System and the United States generally accepted accounting principles.
While the FDD does not include a statement of income for a typical Delta Hotels By Marriott franchise, it does require franchisees to submit such statements annually. Furthermore, if a franchisee is considering purchasing an existing Delta Hotels By Marriott location, the franchisor may provide the records for that specific outlet.