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For Delta Hotels By Marriott, what is the frequency of the fee payment?

Delta_Hotels_By_Marriott Franchise · 2025 FDD

Answer from 2025 FDD Document

Fee. Marriott will charge Participant a fee for the Services as set forth in the Shared Service Agreement. Participant agrees to pay such fees within (15) days of receipt of the electronic invoice. Marriott may modify the fee with respect to each renewal term of this Agreement upon notice to Participant, subject to Participant's right of non-renewal discussed below. Each Participant will be charged throughout the year based on the estimated cost per Transaction or cost per hour, but charges will be trued up to actual cost prior year-end.

Stamp Duty: Participant will pay any stamp duty applicable to these services from its own funds and not as a Deduction.

Source: Item 6 — Obligations of Franchisee.** Franchisee agrees to the following: (FDD pages 363–513)

What This Means (2025 FDD)

According to the 2025 Franchise Disclosure Document, Delta Hotels By Marriott requires payment for services outlined in the Shared Service Agreement within fifteen days of receiving an electronic invoice. The fees may be modified upon renewal of the agreement, with notification to the franchisee, who has the option of non-renewal. Throughout the year, franchisees are charged based on estimated costs per transaction or hour, with reconciliation to actual costs occurring prior to year-end.

This means that as a Delta Hotels By Marriott franchisee, you can expect to receive electronic invoices for services rendered, which must be paid within 15 days. The initial charges are based on estimates, but the final amount will be adjusted to reflect the actual costs incurred. This arrangement allows for flexibility in pricing based on usage and market conditions.

It is important for prospective Delta Hotels By Marriott franchisees to understand the potential for fee modifications upon renewal and to factor this into their financial planning. The reconciliation process at year-end ensures transparency and accuracy in billing, but franchisees should still carefully review all invoices and documentation to ensure they align with their expectations and usage patterns. Additionally, franchisees are responsible for any stamp duties applicable to these services and must pay them separately, without deducting them from payments to Delta Hotels By Marriott.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.