What happens after the expiration of the term of the Delta Hotels By Marriott franchise agreement?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2 After the expiration of the term, we may in our sole discretion agree to enter into a new franchise agreement with you on our then-current form. That agreement may contain materially different terms and conditions than the franchise agreement attached as Exhibit C (including the franchise fees and the duration).
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 111–120)
What This Means (2025 FDD)
According to the 2025 Delta Hotels By Marriott Franchise Disclosure Document, upon the expiration of the franchise term, Delta Hotels By Marriott has the discretion to offer a new franchise agreement. However, this new agreement may differ significantly from the original.
The terms and conditions in any new franchise agreement could include different franchise fees and a different duration than the initial agreement. This means that franchisees should not assume that renewal will be offered on the same terms as their original agreement. Delta Hotels By Marriott retains the right to modify the financial obligations and the length of the franchise term.
Prospective franchisees should be aware that the renewal terms are not guaranteed and are subject to change at Delta Hotels By Marriott's discretion. It is important to maintain a good relationship with the franchisor and adhere to all franchise agreement terms to increase the likelihood of a favorable renewal offer. Franchisees should carefully consider the potential for altered terms upon renewal when evaluating the long-term viability of the franchise.