What financial statements must Delta Hotels By Marriott franchisees furnish to MICC?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
Financial Statements**: Borrower shall furnish to MICC quarterly and annual financial statements of Borrower and the [Members / Partners], annual income statements for the Project, and such other financial or operating information as MICC may from time to time reasonably require.
Source: Item 6 — Obligations of Franchisee.** Franchisee agrees to the following: (FDD pages 363–513)
What This Means (2025 FDD)
According to the 2025 Delta Hotels By Marriott Franchise Disclosure Document, franchisees are required to furnish specific financial statements to MICC (presumably referring to Marriott International Credit Corporation) if the Project is encumbered by a Mortgage in favor of Lender.
Specifically, the franchisee (referred to as "Borrower" in this context) must provide MICC with quarterly and annual financial statements of the Borrower and its Members/Partners. In addition to these, the franchisee must also furnish annual income statements specifically for the Project. MICC also retains the right to request other financial or operating information from time to time, provided such requests are deemed reasonable.
These requirements are part of the obligations the franchisee agrees to, and failure to comply with these provisions could potentially lead to defaults under the MICC Documents. This includes failing to obtain MICC's approval for any sale, transfer, or encumbrance of the Project or any Member/Partner interests, defaulting under the Marriott Franchise Agreement, or defaulting on obligations under the Mortgage or any related agreements affecting the Project.