Can a Delta Hotels By Marriott franchisee transfer or sublicense any part of the System?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Franchisee has no right to, and will not, Transfer, sublicense or allow any Person to use any part of the System, unless permitted in this Agreement;
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Franchisee will not use any part of the System to incur any obligation or indebtedness on behalf of Franchisor or any of its Affiliates;
Source: Item 23 — RECEIPTS (FDD pages 134–251)
What This Means (2025 FDD)
According to the 2025 Delta Hotels By Marriott Franchise Disclosure Document, franchisees are restricted from transferring or sublicensing any part of the System unless explicitly permitted within the franchise agreement. The System encompasses the Intellectual Property and Standards that Delta Hotels By Marriott uses for hotel operations. Unauthorized use of the System constitutes an infringement of Delta Hotels By Marriott's rights and a default under the agreement.
Delta Hotels By Marriott franchisees must use the Intellectual Property and the System solely for operating the Hotel and in the manner specified in the Standards or as approved by Delta Hotels By Marriott. This includes offering or selling goods and services under the Proprietary Marks that meet the Standards' quality and nature. Franchisees must also identify themselves as a franchisee or licensee of Delta Hotels By Marriott in the manner outlined in the Standards and cannot imply any ownership interest in the Proprietary Marks.
These restrictions ensure that the Delta Hotels By Marriott brand maintains uniform quality and guest service across all locations. By preventing unauthorized transfers or sublicensing, Delta Hotels By Marriott retains control over its System and Intellectual Property, safeguarding its brand identity and reputation. This is a common practice in franchising to maintain consistency and protect the brand's value.