How are the monthly Franchise Fees calculated for a Delta Hotels By Marriott franchise?

According to the 2025 Delta Hotels By Marriott Franchise Disclosure Document, the monthly franchise fee is calculated as a percentage of Gross Room Sales. This percentage is specified in Item 11 of Exhibit A of the franchise agreement. The franchisee is prohibited from offering complimentary or reduced-price guestrooms to benefit any other business, whether located at the hotel or elsewhere. This ensures that all revenue from room sales is properly accounted for when calculating the franchise fees.

In practical terms, a prospective Delta Hotels By Marriott franchisee needs to carefully review Item 11 of Exhibit A to understand the exact percentage they will be paying on their Gross Room Sales each month. This percentage is a critical factor in determining the profitability of the franchise. Franchisees should also be aware that offering discounted rooms could be a violation of the agreement and impact the calculation of franchise fees.

It is important to note that while the franchise fee is based on a percentage of Gross Room Sales, franchisees are also responsible for other fees, charges, and costs as outlined in the agreement and any other Marriott agreements. These additional costs can include fees for optional programs, goods or services purchased from Delta Hotels By Marriott, and costs related to electronic systems. Delta Hotels By Marriott retains the right to modify these other fees to reflect changes in costs, allocation methods, or competitive needs, ensuring that franchisees are potentially subject to fluctuating expenses beyond the core franchise fee percentage.