Is participation in Programs optional or mandatory for a Delta Hotels By Marriott hotel?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, Franchisee has independently assessed the Programs and determined that the potential benefits of participating in the Programs justify the risks of participation, and has therefore requested that the Hotel participate in the Programs; and
WHEREAS, Marriott is willing to allow such participation on the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the benefits to be derived herefrom, the receipt and sufficiency of which are hereby acknowledged by each of the parties hereto, it is hereby agreed as follows:
- 1. Program Participation. The Hotel will participate in one or more Programs.
- 2. Program Organization. Marriott will organize and staff the Programs to provide Shared Services for the Hotel and the other hotels participating in each such Program.
Source: Item 7 — Franchisor reserves the right to challenge the applicability of any law that declares provisions in the Agreement void or unenforceable. (FDD pages 288–363)
What This Means (2025 FDD)
According to the 2025 Delta Hotels By Marriott Franchise Disclosure Document, participation in Programs is required. The document states that the franchisee has independently assessed the Programs and requested that the Hotel participate in the Programs. Marriott is willing to allow such participation on the terms and conditions set forth in the agreement. The agreement states that the Hotel will participate in one or more Programs. Marriott will organize and staff the Programs to provide Shared Services for the Hotel and the other hotels participating in each such Program.
Delta Hotels By Marriott organizes and staffs these Programs to provide Shared Services for participating hotels. These Shared Services are designed to benefit the hotels within a specific market by pooling resources and expertise. The costs associated with these Programs, including wages, benefits, startup expenses, rent, and depreciation of capital expenditures, are allocated among the participating hotels. The franchisee is responsible for making payments in compliance with the terms of each invoice, Shared Service Agreement, and the Franchise Agreement.
Delta Hotels By Marriott may periodically evaluate the allocation methodologies to ensure they accurately reflect each participating hotel's share of the costs. If a hotel is added to or withdraws from a Program, the percentage share of costs for the remaining hotels may be adjusted accordingly. This ensures that the costs are fairly distributed among the hotels that are actively participating in the Shared Services. The franchisee retains authority for implementing the Hotel's business strategy, consistent with the Franchise Agreement, including with respect to pricing, business mix, inventory or room or rate allocation. Marriott may offer strategic recommendations in connection with the provision of Shared Services to the Hotel, however Franchisee is not obligated to adopt those recommendations in determining the appropriate business strategy for the Hotel.