For Delta Hotels By Marriott, when will the Hotel's share of the costs for Programs be allocated and invoiced?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
- a. The costs and expenses of implementing and deploying the Programs will be allocated among the hotels receiving a Shared Service as part of a Program in accordance with the cost and allocation methodology described in the corresponding Exhibits. The Hotel's share of the costs will be allocated and invoiced either (i) as the costs are incurred, or (ii) at the time the Franchisee elects to participate in the Program, whichever is later. The costs of implementing and deploying the Programs do not include the ongoing operating costs that are described in 3.b. below.
- b. Costs and expenses of a Program shall include, without limitation, wages, benefits, and bonuses of the Program associates, as well as controllables such as startup expenses, rent, office supplies, postage, telephone expenses, travel expenses, training, entertainment, and depreciation of capital expenditures such as computer systems, and office furniture and facilities (the "Operating Costs"). The Hotel's share of the costs of the Programs, including but not limited to the Operating Costs, will be allocated and invoiced to Franchisee each month.
- c. Franchisee shall make payment in compliance with the terms of each invoice, Shared Service Agreement, and the Franchise Agreement.
- d. Marriott may periodically evaluate the allocation methodologies set forth above in Attachment A and/or Exhibits attached thereto. Should another allocation basis or methodology be identified that better reflects each participating hotel's share of the costs, as deemed by Marriott in its sole discretion, this basis and/or methodology may be adopted. Any such change will be communicated to the participating hotels, including the Hotel, and shall be applied without need to formally modify this Agreement.
- 4. Addition or Withdrawal of Hotel from Market. If a hotel is added as a participant in one or more Programs, the percentage share of the costs of such Program for each of the other hotels in the Market may be adjusted proportionately by the new hotel's share of such costs, if deemed practicable by Marriott, as determined in accordance with this Agreement. If a hotel withdraws as a participant in the Shared Service, the percentage share of the costs of the Shared Service for each of the other participating hotels may be adjusted proportionately by the non-participating hotel's share of such costs, if deemed practicable by Marriott, as determined in accordance with this Agreement.
Source: Item 7 — Franchisor reserves the right to challenge the applicability of any law that declares provisions in the Agreement void or unenforceable. (FDD pages 288–363)
What This Means (2025 FDD)
According to Delta Hotels By Marriott's 2025 Franchise Disclosure Document, the hotel's share of program costs will be allocated and invoiced either as the costs are incurred, or at the time the franchisee elects to participate in the program, whichever occurs later. These costs do not include ongoing operating costs. The hotel's share of the costs of the Programs, including operating costs, will be allocated and invoiced to the franchisee each month. Franchisees are required to make payments in accordance with the terms specified in each invoice, Shared Service Agreement, and the Franchise Agreement.
Delta Hotels By Marriott may periodically evaluate the allocation methods and adopt a different methodology if it better reflects each participating hotel's share of the costs. Any such change will be communicated to the participating hotels and applied without formally modifying the agreement. If a hotel is added as a participant in one or more Programs, the percentage share of the costs of such Program for each of the other hotels in the Market may be adjusted proportionately by the new hotel's share of such costs, if deemed practicable by Marriott. If a hotel withdraws as a participant in the Shared Service, the percentage share of the costs of the Shared Service for each of the other participating hotels may be adjusted proportionately by the non-participating hotel's share of such costs, if deemed practicable by Marriott.
This means that as a Delta Hotels By Marriott franchisee, you will receive invoices for your share of program costs either as those costs are incurred or when you choose to participate in a program, whichever is later. You will also receive monthly invoices for your share of the overall program costs, including operating costs. It is important to carefully review each invoice and the associated agreements to understand the payment terms and your obligations. Be aware that the allocation methods may change, and your share of costs could be adjusted if other hotels join or leave the programs.