Will a Delta Hotels By Marriott franchisee receive an exclusive territory?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we or our affiliates own, lease, manage, license, or franchise, or from other channels of distribution or competitive brands that we or our affiliates control.
You may not be granted a territory, but if you are, it will be non-exclusive. Generally, a territory: (i) will apply to Delta hotels only (iii) will apply for a duration of five years or less; (iv) will not apply to any hotel that is existing or under development as of the date of the franchise agreement; (v) will not apply to any hotel or hotels that are members of a chain of hotels or a group of hotels (with a minimum of four hotels in operation) that is acquired by, merged with, franchised by, or joined through a marketing agreement with, us or one of our affiliates, or the operation of all or substantially all of such hotels is transferred to us or one of our affiliates, even if any such hotel converts to a Delta hotel; and (vi) will not apply to any residential or condominium products or other lodging product developed by us or one of our affiliates (including products using our reservation channels, distribution channels, and loyalty programs). Generally, you will not be granted a territory in connection with the residential, condominium, or multifamily component of your hotel development project. If a territory is granted, specific terms for the grant of a territory, the size of the geographic area, and its duration will depend upon the market in which the site is located, and it will not include, either expressly or by implication, any right for you to develop additional hotels at sites within the territory or to enlarge the hotel at the approved site. If you are granted a territory, it may be defined as a radius around your hotel or delineated by streets, highways, or other geographical boundaries. The continuation of your territorial rights, if any, will not be contingent on your hotel achieving a particular sales volume or market penetration, but may be contingent on other factors such as the timely commencement of construction and opening of your hotel.
The franchise agreement does not provide you with any options, rights of first refusal, or similar rights to acquire additional franchises.
Source: Item 12 — TERRITORY (FDD pages 102–103)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, a Delta Hotels By Marriott franchisee will not receive an exclusive territory. The FDD states that franchisees may face competition from various sources, including other franchisees, outlets owned or affiliated with Delta Hotels By Marriott, and other distribution channels or competitive brands controlled by the company. This means that a franchisee's hotel could potentially compete directly with other Delta Hotels By Marriott locations or other lodging options in the same area.
While an exclusive territory is generally not granted, the FDD outlines conditions under which a non-exclusive territory might be provided. If a territory is granted, it typically applies only to Delta Hotels By Marriott, lasts for five years or less, and does not include hotels existing or under development at the time of the franchise agreement. Additionally, it excludes hotels that are part of a chain or group acquired by, merged with, or franchised by Delta Hotels By Marriott, as well as any residential or condominium products developed by the company. The specific terms, size, and duration of any territory granted will depend on the market in which the hotel is located.
Delta Hotels By Marriott retains the right to develop, operate, and franchise other hotels and lodging products, including Delta Hotels By Marriott and other brands, at any location, even near a franchisee's hotel. This can create direct competition and potentially impact the franchisee's financial performance. The franchise agreement does not provide franchisees with any options or rights of first refusal to acquire additional franchises, further limiting their ability to expand within a given area.
Delta Hotels By Marriott may attempt to resolve conflicts between franchisees or between franchisees and the company regarding territories on a case-by-case basis, considering the contractual rights and obligations of all parties involved. Franchisees should be aware that Delta Hotels By Marriott also provides notice to franchisees and owners of new development and conversion projects, offering an opportunity to respond to concerns and potentially request an impact study, although these guidelines are subject to change or elimination.