For a Delta Hotels By Marriott hotel, how is the Application Fee determined?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
ion required by these Instructions.
3. PROPOSED FINANCING AND FINANCIAL INFORMATION (FORM 2)
Form 2 must be completed for each hotel that is the subject of the Application and the financial information must be provided for each proposed franchisee.
4. OWNERSHIP STRUCTURE AND DUE DILIGENCE (FORM 3)
Form 3 must be completed for each franchisee of each hotel that is the subject of the Ap
Source: Item 23 — RECEIPTS (FDD pages 134–251)
What This Means (2025 FDD)
According to the 2025 Delta Hotels By Marriott Franchise Disclosure Document, the Application Fee for each hotel is determined based on the specific brand. The FDD states that the application fee is payable in U.S. dollars. For each hotel brand, the application fee is either a specified dollar amount or a certain dollar amount per guestroom, whichever is greater. However, the actual dollar figures for the Application Fee are redacted and represented by "$xxx,xxx" in the document.
Prospective Delta Hotels By Marriott franchisees should note that the Application Fee is paid to induce the franchisor, MIF, L.L.C., to process the application. The franchisee must submit the Application Fee via wire transfer no earlier than 10 business days after receiving the Franchise Disclosure Document. The franchisor has the right to use the fee as it sees fit, including investing or commingling it with other funds.
It's important to understand that the Application Fee is generally non-refundable if the application is approved. However, if the application is not approved, Delta Hotels By Marriott will return the Application Fee, less $10,000 and any costs they incurred. The franchisee should be aware that they cannot begin operating, managing, or using Delta Hotels By Marriott’s proprietary marks until the Franchise Agreement is fully executed and countersigned by the franchisor.
Given the redaction of the specific fee amounts in the FDD, it is crucial for potential Delta Hotels By Marriott franchisees to clarify the exact Application Fee amount with the franchisor during their due diligence. Understanding the full financial commitment upfront is essential for making an informed investment decision.