For a new-to-system Delta Hotels By Marriott hotel, what is the franchise application fee structure?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
is disclosure document.
INITIAL FEES
1. Application Fees and Related Fees
A. Application Fees
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- New-to-System Delta Hotel. The franchise application fee for a new-to-system Delta hotel, including the conversion of a non-Company Brand Hotel to a Delta hotel, is $100,000 plus $400 per guestroom in excess of 250 guestrooms.
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- Existing Delta Hotel. The franchise application fee for an existing Delta hotel or to convert a hotel that is currently managed by us or one of our affiliates to a franchised Delta hotel is the greater of $150,000 or $500 per guestroom.
Source: Item 4 — BANKRUPTCY (FDD pages 34–39)
What This Means (2025 FDD)
According to the 2025 Delta Hotels By Marriott Franchise Disclosure Document, the franchise application fee for a new-to-system Delta Hotels By Marriott hotel, which includes the conversion of a non-Company Brand Hotel to a Delta Hotels By Marriott, is $100,000, plus an additional $400 per guestroom if the hotel exceeds 250 guestrooms.
Delta Hotels By Marriott requires that the franchise application fees are generally payable in full when the franchise application is submitted. These fees are non-refundable once the application is approved. However, if an applicant withdraws their application before approval, or if Delta Hotels By Marriott does not approve the application, Delta Hotels By Marriott will refund the application fee for each unapproved hotel, less $10,000 per unapproved hotel. Delta Hotels By Marriott will also deduct their outside counsel fees and expenses from this refund.
This fee structure is typical in the franchise industry, where initial fees cover the franchisor's administrative and legal costs associated with evaluating and processing the application. The non-refundable nature of the fee after approval underscores the importance of thorough due diligence before submitting an application. The potential deduction of $10,000 plus legal fees from refunds for withdrawn or unapproved applications further emphasizes the need for careful consideration and a realistic assessment of one's qualifications and the suitability of the location before applying for a Delta Hotels By Marriott franchise.