How does MICC apply payments received from Delta Hotels By Marriott franchisees?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4. Payments. All payments shall be made in immediately available funds to MICC at 7750 Wisconsin Avenue, Department 52/924.11, Bethesda, Maryland 20814, Attention: Treasury Department, or such other address specified by MICC in a notice to the [members / partners] of Borrower given in accordance with the terms of the Equity Pledge. All payments received by MICC may be applied by MICC to any obligation of Obligors hereunder or under the Equity Pledge in such order as MICC, in its sole discretion, shall elect. Any payment received after 2:00 p.m., Washington, D.C. time, shall be treated as if it were paid at 9:00 a.m., Washington, D.C. time, on the next Business Day.
Source: Item 6 — Obligations of Franchisee.** Franchisee agrees to the following: (FDD pages 363–513)
What This Means (2025 FDD)
According to the 2025 Delta Hotels By Marriott Franchise Disclosure Document, MICC (Marriott International Capital Corporation) has the discretion to apply payments received from franchisees to any obligation the franchisee has under the Equity Pledge. Specifically, MICC can choose the order in which payments are applied to different obligations.
Delta Hotels By Marriott franchisees must make all payments in immediately available funds to MICC at the specified address or another address designated by MICC. Payments received after 2:00 p.m. Washington, D.C. time, are treated as if they were paid at 9:00 a.m. Washington, D.C. time, on the next business day.
This clause provides MICC with significant flexibility in managing the financial relationship with Delta Hotels By Marriott franchisees, allowing them to prioritize the repayment of obligations as they see fit. Franchisees should be aware of this provision and understand that MICC has the power to direct their payments to specific debts or obligations.