What is the maximum interest rate Delta Hotels By Marriott charges on overdue amounts?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE* | REMARKS |
|---|---|---|---|
| Interest on Overdue Amounts | Lesser of 18% per year or maximum interest rate permitted by law | On demand | Interest accrues from the due date until the overdue amount is paid. |
Source: Item 1 — Fees for Other Services (FDD pages 39–71)
What This Means (2025 FDD)
According to Delta Hotels By Marriott's 2025 Franchise Disclosure Document, if a franchisee has overdue amounts, the interest charged will be the lesser of 18% per year or the maximum interest rate permitted by law. This interest accrues from the date the payment was originally due until the overdue amount is fully paid. The payment is due on demand.
This means that if a Delta Hotels By Marriott franchisee fails to make a payment on time, they will be charged interest on the outstanding balance. The specific interest rate will depend on the legal limits in the franchisee's jurisdiction, but it will not exceed 18% per year. This is a fairly standard practice in franchising, as franchisors need to ensure they are compensated for late payments.
Prospective Delta Hotels By Marriott franchisees should be aware of this policy and ensure they have sufficient cash flow to make all payments on time. Failing to do so could result in significant interest charges, which would negatively impact their profitability. It is also important to understand the specific laws in their jurisdiction regarding maximum interest rates, as this could affect the actual rate charged.