Who pays for the costs associated with the opening team provided by Delta Hotels By Marriott?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor will provide an opening team to assist in the opening of the Hotel as a System Hotel and to train the Hotel employees.
The team members will remain at the Hotel for such time as Franchisor deems appropriate to open the Hotel as a System Hotel.
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, the franchisee is responsible for covering the costs associated with the opening team. Delta Hotels By Marriott will provide an opening team to assist in the hotel's opening as a System Hotel and to train the hotel employees. The team will remain at the hotel for a duration that Delta Hotels By Marriott deems appropriate.
However, the franchisee is obligated to pay Delta Hotels By Marriott's costs for providing this assistance. These costs specifically include travel costs incurred by the opening team. This means that in addition to the standard franchise fees and other operational expenses, a new Delta Hotels By Marriott franchisee must budget for the expenses related to the opening team's support during the initial launch phase.
This arrangement is fairly typical in the franchise industry, where the franchisor provides initial support and training, but the franchisee bears the direct costs. Prospective franchisees should carefully consider these expenses when evaluating the overall investment required to start a Delta Hotels By Marriott franchise. Understanding and planning for these costs is crucial for ensuring a smooth and financially stable opening.