To whom is the initial franchise application fee for a Delta Hotels By Marriott franchise paid?

According to Delta Hotels By Marriott's 2025 Franchise Disclosure Document, all payments are made to Marriott, including the initial franchise application fee. The document specifies that this fee is partially refundable if Marriott does not approve the franchise application. This is an important consideration for potential franchisees as it clarifies where the funds are directed and under what conditions a refund may be available. Payments made to other parties may or may not be refundable based upon your agreements with them.

Prospective franchisees should note that while most payments to Marriott are non-refundable, the initial franchise application fee has a specific exception. This provides a degree of financial protection during the initial stages of the application process. It is crucial to understand the conditions under which the application fee is refundable, as outlined in Item 5 of the FDD, to manage financial expectations and risks.

Understanding the refund policy for the initial franchise application fee is a key aspect of due diligence. Delta Hotels By Marriott applicants should carefully review Item 5 of the FDD and seek clarification from the franchisor regarding the specific conditions and procedures for obtaining a refund if their application is not approved. This will help ensure a clear understanding of the financial commitments and potential refunds associated with the franchise application process.