What fee does a Delta Hotels By Marriott franchisee pay to MICC for the Credit Enhancement?

According to the 2025 Delta Hotels By Marriott Franchise Disclosure Document, the fee paid to MICC (presumably Marriott International Credit Corporation) for the Credit Enhancement is not specified as a concrete dollar amount or percentage within the excerpts provided. Instead, the FDD indicates that the borrower, which would be the franchisee, will pay MICC a fee that is either monthly or a one-time upfront payment. The exact amount is to be a percentage of the loan balance, but the percentage is not filled in the agreement.

Several other fees and expenses related to the Credit Enhancement are mentioned. These include fees, costs, charges, and expenses incurred by MICC related to its payment obligations to the lender, preserving its rights, administering or enforcing its rights under the agreement, and purchasing the loan after an event of default. Interest will accrue on any of these unpaid amounts. The franchisee is also responsible for legal fees and expenses incurred by MICC in connection with the transaction, even if the loan or credit enhancement is not consummated.

Prospective Delta Hotels By Marriott franchisees should carefully review the Credit Enhancement Agreement and related documents to fully understand all potential fees and expenses associated with the credit enhancement. It is essential to clarify the exact percentage of the loan balance charged by MICC for the Credit Enhancement, whether it is a monthly or one-time fee, and under what specific conditions these fees are applicable. Consulting with a financial advisor and attorney is recommended to assess the full financial implications.