Does the Delta Hotels By Marriott franchise agreement create any third-party beneficiaries?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. No Third-Party Beneficiary. Nothing in this Agreement is intended to create any third-party beneficiary or give any rights or remedies to any Person except Franchisor, Franchisee and Owner and their respective permitted successors and assigns.
Source: Item 11 — FINANCING OF THE HOTEL (FDD pages 259–279)
What This Means (2025 FDD)
According to the 2025 Delta Hotels By Marriott Franchise Disclosure Document, the franchise agreement does not intend to create any third-party beneficiaries. The agreement explicitly states that it does not give any rights or remedies to any person except for the Franchisor, Franchisee, and Owner, as well as their permitted successors and assigns.
This clause is a standard legal provision designed to limit the scope of the agreement and prevent unintended parties from claiming rights or benefits under it. By clearly stating that only the Franchisor, Franchisee, and Owner are intended to benefit, Delta Hotels By Marriott aims to avoid potential legal disputes with other parties who might otherwise argue they are entitled to certain advantages or protections under the agreement.
For a prospective Delta Hotels By Marriott franchisee, this means that only they (the Franchisee), the Franchisor, and the Owner have direct rights and obligations under the franchise agreement. Other parties, such as suppliers, customers, or employees, cannot claim any rights or remedies based on the agreement's terms. This helps to ensure that the contractual relationship remains clear and focused on the core parties involved in the franchise operation.