What payments must a Delta Hotels By Marriott franchisee and its Affiliates make before opening the Hotel?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
- E.
Franchisee and its Affiliates have paid all amounts due Franchisor and its Affiliates;
- G.
Franchisee has retained Franchisor and paid Franchisor the then-current testing and inspection fee to test and inspect the fire protection and life safety systems of the Hotel, and such testing and inspection verifies the Hotel complies with Franchisor's fire protection and life safety Standards and the fire protection and life safety systems of the Hotel are operational.
7. APPLICABLE BRAND AND APPLICATION FEE
The Application Fee (payable in US Dollars) for each hotel subject to this Application is set forth below for each brand of hotels unless otherwise indicated in the Application Letter (Form 1):
"Hotel Brand" : The greater of $xxx,xxx or $xxx per guestroom
No fees of any kind may be paid to us in connection with an application until at least 10 business days after the date of the applicable Receipt.
Franchisee will pay Franchisor's costs associated with providing such assistance, including Travel Costs.
Source: Item 23 — RECEIPTS (FDD pages 134–251)
What This Means (2025 FDD)
According to Delta Hotels By Marriott's 2025 Franchise Disclosure Document, a franchisee and its affiliates must pay all amounts due to the franchisor and its affiliates before the Hotel can be opened. This encompasses various fees, charges, and costs required under the Franchise Agreement or any other Marriott Agreement. These payments also include any optional programs the franchisee participates in, as well as any goods or services purchased, leased, or licensed from the franchisor, including costs related to electronic systems.
Specifically, the franchisee is responsible for paying the Application Fee, which is determined for each hotel brand and is the greater of two amounts: $xxx,xxx or $xxx per guestroom. It is important to note that no fees of any kind may be paid to the franchisor in connection with an application until at least 10 business days after the date of the applicable Receipt.
Additionally, the franchisee must cover the costs associated with the opening team provided by Delta Hotels By Marriott to assist in the Hotel opening and employee training. These costs include travel expenses incurred by the team members. Furthermore, before opening, the franchisee must retain Delta Hotels By Marriott and pay the then-current testing and inspection fee to test and inspect the fire protection and life safety systems of the Hotel. This inspection verifies that the Hotel complies with Delta Hotels By Marriott's fire protection and life safety standards and that the systems are operational.