What opportunities to cure a default does Delta Hotels By Marriott provide to franchisees?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
19.2 Default with Opportunity to Cure. Franchisee will be in default and Franchisor may terminate this Agreement for the events listed below, if after 30 days' notice of default (or such greater number of days given by Franchisor in its sole discretion or as required by Applicable Law), Franchisee fails to cure the default as specified in the notice:
A.
Franchisee fails to timely start and complete construction or conversion of the Hotel or fails to timely open the Hotel in accordance with this Agreement and the Standards; or
- B.
Franchisee fails to timely complete any renovation or repair of the Hotel in accordance with this Agreement and the Standards; or
- C.
Franchisee and its Affiliates fail to pay any amounts due under the Marriott Agreements; or
D. any Marriott Agreement is in breach beyond any applicable cure period, is in default, or is terminated based on a breach by or default of Franchisee or its Affiliates (or any Owner referenced in Item 17 of Exhibit A); or
E.
Franchisee or any Interestholder in Franchisee, or any officer, director or employee of Franchisee, is convicted of a Serious Crime or is engaged in conduct that may adversely
affect the Hotel, the System, any Franchisor Product or Franchisor, and such Person is not terminated from its relationship with Franchisee; or
- F. Franchisee fails to comply with the Standards or there occurs any other breach of the Marriott Agreements, including any representations and warranties by Franchisee.
- 19.3 Suspension of Reservation System. If Franchisee is in default under this Agreement and the default is not cured within the cure period (if any), Franchisor may, in addition to any other remedies, suspend the Hotel from the Reservation System while such default remains uncured. Once the default is cured, Franchisor will promptly reconnect the Hotel to the Reservation System. Franchisor's exercise of its remedies in this Section 19.3 will not (i) constitute actual or constructive termination or abandonment of this Agreement; (ii) be a waiver of the default or any breach of this Agreement; or (iii) preclude Franchisor from terminating this Agreement in accordance with Section 19.1 or 19.2, as applicable, or pursuing any equitable or other remedies. Franchisee waives all claims against Franchisor and its Affiliates arising from any suspension from the Reservation System arising as a result of Franchisee's default under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 134–251)
What This Means (2025 FDD)
According to Delta Hotels By Marriott's 2025 Franchise Disclosure Document, franchisees typically have 30 days after receiving notice of default to cure the issue, though Delta Hotels By Marriott may extend this period at their discretion or as required by law. If a franchisee fails to start/complete construction, renovation, or repair of the hotel, or fails to open the hotel according to the agreement and standards, they have an opportunity to cure the default. Similarly, if the franchisee or their affiliates fail to pay amounts due under the Marriott Agreements, they are provided a chance to remedy the situation.
Furthermore, if any Marriott Agreement is in breach, is in default, or is terminated due to a breach by the franchisee or their affiliates, the franchisee has an opportunity to cure the default within the given cure period. Franchisees also have an opportunity to cure a default if they fail to comply with the standards or if there is any other breach of the Marriott Agreements, including any representations and warranties made by the franchisee.
It is important to note that if a Delta Hotels By Marriott franchisee is in default and fails to cure it within the specified cure period, Delta Hotels By Marriott has the right to suspend the hotel from the Reservation System. However, once the default is resolved, Delta Hotels By Marriott will promptly reconnect the hotel to the system. This suspension does not constitute a termination of the agreement, nor does it waive the default or prevent Delta Hotels By Marriott from pursuing other remedies.