What insurance requirements must a Delta Hotels By Marriott franchisee comply with before opening the Hotel?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
Without Franchisor's prior approval, Franchisee will not advertise, promote or operate the Hotel as a System Hotel until:
- F.
Franchisee has complied with the insurance requirements of this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 134–251)
What This Means (2025 FDD)
According to the 2025 Delta Hotels By Marriott Franchise Disclosure Document, a franchisee must comply with the insurance requirements outlined in the franchise agreement before they can open their hotel. Specifically, the franchisee cannot advertise, promote, or operate the hotel as a Delta Hotels By Marriott System Hotel until they have met these insurance obligations.
This requirement ensures that the Delta Hotels By Marriott brand is protected from potential liabilities and risks associated with operating a hotel. By mandating specific insurance coverage, Delta Hotels By Marriott aims to maintain consistent standards and protect the interests of both the franchisee and the franchisor.
Prospective franchisees should carefully review the insurance requirements detailed elsewhere in the franchise agreement to understand the types and amounts of coverage they must secure. It is important to factor in the costs of these insurance policies when assessing the overall investment required to open and operate a Delta Hotels By Marriott franchise.