How is the Marketing Fund Contribution for Delta Hotels By Marriott calculated?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Marketing Fund Contribution. Beginning on the Opening Date, Franchisee will pay Franchisor for each month an amount equal to the percentage of Gross Room Sales stated in Item 12 of Exhibit A for such month, which Franchisor will use for the Marketing Fund Activities (the "Marketing Fund Contribution"). The Marketing Fund Contribution will be paid by Franchisee as part of the Program Services Contribution. Franchisor may (i) change the method of funding the Marketing Fund Activities (including by establishing methods of funding Marketing Fund Activities other than by the Marketing Fund Contribution or the Program Services Contribution); (ii) change the amount of the Marketing Fund Contribution (without any obligation to make a corresponding change to the total Program Services Contribution); (iii) change the local, country, regional, continental or international scope of the Marketing Fund or the Marketing Fund Activities; (iv) merge or separate the Marketing Fund with marketing funds used to benefit other Franchisor Products; or (v) discontinue any Marketing Fund Activities, and Franchisee will be bound by any and all such changes.
Source: Item 23 — RECEIPTS (FDD pages 134–251)
What This Means (2025 FDD)
According to Delta Hotels By Marriott's 2025 Franchise Disclosure Document, the Marketing Fund Contribution is calculated as a percentage of Gross Room Sales. Beginning on the Opening Date, franchisees must pay Delta Hotels By Marriott a monthly amount equal to the percentage of Gross Room Sales stated in Item 12 of Exhibit A. This contribution is specifically designated for Marketing Fund Activities. The Marketing Fund Contribution is paid by the franchisee as part of the Program Services Contribution.
Delta Hotels By Marriott retains the right to modify various aspects of the Marketing Fund. These modifications include changing the funding method, altering the contribution amount without necessarily adjusting the total Program Services Contribution, changing the scope of the Marketing Fund (local, regional, etc.), merging or separating the Marketing Fund with those of other Franchisor Products, or discontinuing any Marketing Fund Activities altogether. Franchisees are bound by any such changes implemented by Delta Hotels By Marriott.
The funds collected for the Marketing Fund are used to promote general public recognition of Delta Hotels By Marriott's Marks and Franchisor Products, including the Loyalty Program and System Hotels. These Marketing Fund Activities may include brand strategy, creation and distribution of Marketing Materials, advertising, promotional activities, market research, website development, and the retention of marketing professionals. These activities can be conducted on various scales, including local, regional, national, continental, or international levels.
Delta Hotels By Marriott emphasizes that it does not have a fiduciary duty to franchisees regarding the Marketing Fund. The funds may be commingled with other monies and used to cover administrative costs, salaries, overhead, and collection and accounting costs. Delta Hotels By Marriott may also loan money for Marketing Fund Activities and charge interest, using the Marketing Fund Contribution to repay such loans. Upon request, Delta Hotels By Marriott will provide a statement of operations for the Marketing Fund, which may be audited or unaudited, for any fiscal year if the request is made within a specific timeframe after the fiscal year's end.