When are Franchise Fees due to Delta Hotels By Marriott?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
3.2 Franchise Fees. Beginning on the Opening Date, Franchisee will pay Franchisor for each month an amount equal to the percentage of Gross Room Sales stated in Item 11 of Exhibit A for such month (the "Franchise Fees"). Franchisee will not offer complimentary or reduced-price Guestrooms to benefit any other business at or outside of the Hotel.
Source: Item 23 — RECEIPTS (FDD pages 134–251)
What This Means (2025 FDD)
According to Delta Hotels By Marriott's 2025 Franchise Disclosure Document, franchise fees are due monthly. Specifically, beginning on the hotel's opening date, the franchisee must pay Delta Hotels By Marriott a percentage of gross room sales for each month. The specific percentage is outlined in Item 11 of Exhibit A of the Franchise Disclosure Document.
This means that a Delta Hotels By Marriott franchisee will have a recurring monthly obligation to remit franchise fees based on their hotel's revenue. This is a standard practice in the franchise industry, where franchisors typically collect royalties as a percentage of sales. Franchisees need to carefully review Item 11 of Exhibit A to understand the exact percentage they will be paying, as this will directly impact their profitability.
It's important to note that the fees are calculated based on Gross Room Sales, and franchisees are prohibited from offering complimentary or reduced-price rooms to benefit other businesses. This ensures that all revenue-generating rooms are properly accounted for when calculating the franchise fees owed to Delta Hotels By Marriott. Franchisees should factor this ongoing expense into their financial projections and business plans.