Where can I find the provisions required to be in the management agreement for a Delta Hotels By Marriott franchise?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
For each hotel, indicate whether the proposed franchisee or a management company will manage the hotel and provide the information requested. Please also indicate if there is common ownership between the franchisee and the management company for a hotel and provide the requested information. If the hotel is to be managed by a third-party manager, there may be additional requirements, and certain modifications to the franchise agreement may be required. For provisions required to be in your management agreement and for additional information related to our requirements, see Item 15 of the applicable Franchise Disclosure Document and the Management Company Acknowledgment form attached to the Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 134–251)
What This Means (2025 FDD)
According to the 2025 Delta Hotels By Marriott Franchise Disclosure Document, details regarding the provisions required to be in your management agreement can be found in Item 15 of the applicable Franchise Disclosure Document and the Management Company Acknowledgment form attached to the Franchise Agreement. If a third-party manager will manage the hotel, there may be additional requirements and certain modifications to the franchise agreement may be necessary.
Delta Hotels By Marriott requires that the hotel be operated by a person consented to by the Franchisor in a Management Company Acknowledgment. Delta Hotels By Marriott may withhold consent if the proposed management company is not financially capable, lacks managerial skills or operational capacity to meet the brand's standards, does not provide requested information and access, or is not a Qualified Person. Delta Hotels By Marriott has the right to review any management agreement between the franchisee and its proposed management company, and in case of conflict, the Franchise Agreement will take precedence. The franchisee remains responsible for complying with the agreement's obligations even when a management company is retained.
Delta Hotels By Marriott may set conditions for its consent to a management company, potentially requiring participation in specific programs. The franchisee must execute required documents and cover the costs of these programs. Amendments to the Franchise Agreement due to a change in the management company will incur the franchisor's outside counsel costs, payable by the franchisee. Consent can be withdrawn if the management company no longer meets the conditions of the agreement, the Management Company Acknowledgment, or the brand standards.
If there is a change of control of the Management Company, or if the Management Company is no longer a Qualified Person, or if Management Company becomes the principal operator for a Competitor or if there is a material adverse change to the financial condition or operational capacity of the Management Company, the franchisee must promptly inform Delta Hotels By Marriott. Based on these changes, Delta Hotels By Marriott may require the franchisee to terminate the agreement with the current management company and find a replacement that meets the franchisor's approval.