If a franchisee of Delta Hotels By Marriott does not operate the hotel themselves, what is required?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
We require franchisees to operate the hotel or to retain an approved management company consented to by us (Franchise Agreement – Section 8.1). A general manager who has successfully completed our training program must directly supervise the business on the premises. We require the general manager and other managers to devote full time to the management and operation of the hotel.
We may determine that you are not qualified to operate your hotel. In making such determination we will review, among other things, your managerial and operational experience, skills, capacity, capabilities, and philosophy to determine whether, based on our experience as a franchisor, owner, and operator of hotels, we believe you will be able to operate your hotel in accordance with the standards and the franchise agreement. If we determine that you are not qualified to operate your hotel, you will be required to hire a management company to operate your hotel. In certain circumstances, we may allow you to participate in a franchise management training program. We may include certain provisions in your franchise agreement that will require you to retain a third-party management company if you fail to meet certain quality assurance requirements.
Even if we determine that you are qualified to operate your hotel, you may desire nonetheless to hire a management company to operate your hotel. You must obtain our consent before you hire a proposed management company to operate your hotel. We have the right to approve any new or replacement management company and the right to review any management agreement between you and a management company. The management agreement must be subject to the terms and provisions of the franchise agreement.
You and the management company must operate the hotel in conformity with the franchise agreement and our standards. We have the right to require you to replace the management company or terminate the franchise agreement if the management company fails to operate the hotel in strict compliance with the franchise agreement.
We do not require the on-premises management company or general manager to have an equity interest in the franchised business.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 109–110)
What This Means (2025 FDD)
According to Delta Hotels By Marriott's 2025 Franchise Disclosure Document, franchisees are required to operate the hotel themselves or retain an approved management company that Delta Hotels By Marriott consents to. If Delta Hotels By Marriott determines that a franchisee is not qualified to operate the hotel, the franchisee will be required to hire a management company. Even if the franchisee is deemed qualified, they may still choose to hire a management company with Delta Hotels By Marriott's consent. Delta Hotels By Marriott retains the right to approve any new or replacement management company and review the management agreement, ensuring it aligns with the franchise agreement.
The management company and the franchisee must operate the hotel in accordance with the franchise agreement and Delta Hotels By Marriott's standards. If the management company fails to strictly comply with the franchise agreement, Delta Hotels By Marriott has the right to require the franchisee to replace the management company or even terminate the franchise agreement. This ensures that all Delta Hotels By Marriott locations maintain consistent standards, regardless of who is managing the day-to-day operations.
Delta Hotels By Marriott does not require the on-premises management company or general manager to have an equity interest in the franchised business. A general manager who has successfully completed Delta Hotels By Marriott's training program must directly supervise the business on the premises, and this general manager, along with other managers, must devote full time to the management and operation of the hotel. This requirement ensures that the hotel is professionally managed and adheres to Delta Hotels By Marriott's operational standards, even if the franchisee is not directly involved in the daily operations.