Does the Delta Hotels By Marriott Franchise Disclosure Document have amendments for California?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
CALIFORNIA
STATUTORY AND REGULATORY PROVISIONS AND REQUIREMENTS OF THE STATE OF CALIFORNIA APPLICABLE TO THE FRANCHISE DISCLOSURE DOCUMENT
- THE CALIFORNIA FRANCHISE INVESTMENT LAW REQUIRES THAT A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH THE DISCLOSURE DOCUMENT.
- Item 3 of the disclosure document is modified to include the following:
Neither we, nor any person identified in Item 2, is subject to any currently effective order of any national securities association or national securities exchange (as defined in the Securities and Exchange Act of 1934, 15 U.S.C. § 78a, et seq.) suspending or expelling such person from membership in such association or exchange.
Source: Item 11 — FINANCING OF THE HOTEL (FDD pages 259–279)
What This Means (2025 FDD)
Yes, the 2025 Franchise Disclosure Document for Delta Hotels By Marriott includes state-specific amendments for California. These amendments address specific legal considerations and requirements within the state related to franchise agreements.
The California amendments cover several key areas. Item 3 of the disclosure document is modified to confirm that neither Delta Hotels By Marriott, nor any person identified in Item 2, is subject to any currently effective order of any national securities association or national securities exchange. The document also states that California law requires that a copy of all proposed agreements relating to the sale of the franchise be delivered together with the disclosure document.
Additionally, Item 17 is modified to align with California Business and Professions Code Sections 2000 through 20043, which provide rights to the franchisee concerning termination, transfer, or non-renewal of a franchise, clarifying that the law will take precedence if any provision in the franchise agreement is inconsistent with it. The amendment also addresses the enforceability of termination upon bankruptcy, liquidated damages clauses, choice of law, binding arbitration, and general releases in the context of California law. Item 19 is modified to include that the financial performance representations figures do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit. You should conduct an independent investigation of the costs and expenses you will incur in operating your franchised business.