What happens to the Application Fee paid to Delta Hotels By Marriott?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
l or gaming license; and all of the information contained in the Application is true, correct, complete and not misleading through omission of material information, as of the date hereof.
(g) Neither Applicant nor any affiliate of Applicant (i) has any claims against Franchisor or any of Franchisor's affiliates or (ii) is a Competitor or a Restricted Person, as such terms are defined in the Agreements (see the form agreements attached to the FDD).
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- Applicant acknowledges and agrees that:
(a) Applicant is submitting this Application either as the person or entity that will sign one or more Agreements, or as the person or entity that will control the proposed franchisee or area developer for each hotel, as applicable.
(b) Franchisor reserves the right to approve or deny this Application with respect to one or more hotels, in its sole discretion. Applicant will not acquire any rights by virtue of the submission of the Application whether or not Franchisor approves the Application. Any expenses incurred by or on behalf of Applicant in connection with this Application or any approval of this Application (including without limitation any costs of constructing, renovating or operating the proposed hotel(s)) are at Applicant's sole risk and are not being made in reliance on any action of Franchisor.
(c) Franchisor does not enter into oral agreements or understandings with respect to franchises or matters pertaining to the grant of a franchise. Accordingly, there are no agreements or understandings whatsoever between Applicant and Franchisor with respect to the Application or any franchise.
(d) An Application Fee will be paid to Franchisor via wire transfer no earlier than 10 business days after Applicant has received a Franchise Disclosure Document. The fee may be invested, commingled with other funds of Franchisor or otherwise used by Franchisor, as it deems appropriate in its discretion. Franchisor will not enter into an Agreement with Applicant until it receives full payment of the Application Fee.
- (e) For each proposed hotel under this Application:
- i For single-unit franchise agreements, if Franchisor does not approve the Application for the hotel, it shall have no liability to Applicant for such hotel other than to return the Application Fee for the hotel, less Ten Thousand Dollars ($10,000) and Franchisor's costs.
- ii If the application for a development agreement or a single-unit franchise agreement is approved, the application fee for the hotel will not be refunded.
- iii MSB Only: If Applicant and Franchisor have not executed a franchise agreement for the hotel within sixty (60) days after the issuance of the first draft of the franchise agreement for the hotel, Franchisor may withdraw its approval of the Application with respect to such hotel unless applicant pays an application extension fee of Ten Thousand Dollar ($10,000). The grant of extension under a single unit franchise agreement will not constitute a waiver of Franchisor's rights under any Area Development Agreement.
- (e) For each proposed hotel under this Application:
Source: Item 23 — RECEIPTS (FDD pages 134–251)
What This Means (2025 FDD)
According to Delta Hotels By Marriott's 2025 Franchise Disclosure Document, the application fee is paid via wire transfer no earlier than 10 business days after the applicant receives the Franchise Disclosure Document. Delta Hotels By Marriott may invest the fee, commingle it with other funds, or use it as it sees fit. Delta Hotels By Marriott will not enter into an agreement with the applicant until it receives full payment of the application fee.
For single-unit franchise agreements, if Delta Hotels By Marriott does not approve the application for the hotel, its only liability is to return the application fee for the hotel, less $10,000 and Delta Hotels By Marriott's costs. However, if the application for a development agreement or a single-unit franchise agreement is approved, the application fee for the hotel will not be refunded.
Additionally, if the franchise agreement is not executed for any hotel because the applicant does not acquire the hotel (or any interest in it), Delta Hotels By Marriott will return the portion of the application fee actually paid for that hotel, less $10,000, after confirming that all outside counsel fees and expenses associated with the transaction have been paid by the applicant. If the applicant and Delta Hotels By Marriott have not executed a franchise agreement within 60 days after the issuance of the first draft of the franchise agreement, Delta Hotels By Marriott may withdraw its approval unless the applicant pays an application extension fee of $10,000.
If, prior to the execution of the Franchise Agreement, the applicant loses legal control over the site of the hotel, Delta Hotels By Marriott's approval of the application will no longer be effective. In such an event, Delta Hotels By Marriott will retain the full application fee and withdraw its approval of the hotel. If the applicant regains legal control over the site or a different site, a new application must be submitted.