factual

What are the potential costs associated with Indemnification for a Delta Hotels By Marriott franchise?

Delta_Hotels_By_Marriott Franchise · 2025 FDD

Answer from 2025 FDD Document

TYPE OF FEE AMOUNT DUE DATE* REMARKS
Accounting Audit The amount of the underpayment plus interest if an audit reveals an underpayment On demand If an audit reveals an underpayment of 5% or more, or if an audit reveals that accounting procedures are insufficient to accurately determine payments due, then you must reimburse us for all costs in connection with the audit.
Interest on Overdue Amounts Lesser of 18% per year or maximum interest rate permitted by law On demand Interest accrues from the due date until the overdue amount is paid.
Costs and Attorneys’ Fees Varies On demand Payable to us if you do not comply with the franchise agreement or related agreements.
mCredit Customer Credit Reference Reports $12 per report On demand mCredit is an optional credit reference tool that provides payment history on corporate customers who have been direct- billed for meetings and events.
American Hotel and Lodging Association (AH&LA) 17 $4.50 per guestroom per year On demand This is an optional membership in AH&LA, which provides advocacy, industry communications, and professional education.
Franchisee Associate Job $135 per Marriott.com job On demand This is an optional service.
Postings posting
GM Awards $300 to $1,500 per hotel per year On demand This charge is for the annual global general managers awards. It is charged to all hotels open for the full year for which the awards are given.
Franchise Operations Support Resources Varies; approximately $400 to $1,500 per day per employee, depending on the experience and area of expertise of the employee On demand This is an optional service. Upon your request we will provide to your hotel, on a temporary basis, operations personnel who are part of a “task force” to assist with vacancies or short-term staffing needs. You must execute a service agreement to use this service (see Exhibit L).
BT Room Nights Reserved During the Monthly BT Booking Charge*
Immediately Preceding Calendar Year
0 - 400 $126.69
401 - 1,300 $212.89
1,301 + $300.14
TYPE OF FEE AMOUNT 2025, the fee is estimated to be as follows (subject to periodic true-ups as set forth in your CEC PSS Agreement): $2.65 to $2.80 per call for non-resort hotels; plus. $4.25 to $4.45 per call for resort hotels requesting enhanced services from a specialized resort team, as provided in your CEC PSS Agreement); plus. $41.70 to $43.80 per hour for other PSS. DUE DATE* REMARKS CECs for processing. If you participate in CEC PSS, you must comply with our then-current call forwarding guidelines. You will be charged these amounts for all calls processed by our CECs that were forwarded by the hotel. CEC PSS rates are adjusted annually and may be computed on a different basis in the future. Participation in this program is generally optional, but may be required in certain circumstances, including if you or your management company is new to Marriott. To participate, you must execute a CEC PSS Agreement (see Exhibit L).
National Group Sales Acceptance of the lead is voluntary. You only pay if you accept the lead, and the business opportunity books at your hotel. These fees may be refunded or adjusted for certain cancellations or modifications within designated periods, consistent with our then current policies.
 Group Lead $2.30 per room night booked On demand This fee applies to business opportunities for groups of 10 or more rooms, including single night and extended-stay business opportunities.
$139.00 per catering On demand
Catering Lead opportunity booked
 Extended-Stay Lead $2.30 per room night booked On demand
Group Demand Generation $1.00 per group room night booked On demand This charge applies to each reservation made utilizing a group intermediary, including reservations made through National Group Sales and the Global Sales Organization, and is in addition to the other fees described in this Item
TYPE OF FEE AMOUNT DUE DATE* REMARKS
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6. Acceptance of the lead is voluntary. You only pay if you accept the lead and the group books at your hotel.
International Sales Teams • Group and/or Sales and Catering Lead Varies, approximately 6% of gross group room revenue and/or catering revenue, as applicable On demand International sales teams may make group leads available to the hotel. Acceptance of a lead is voluntary. You only pay if you accept the lead and the group books at your hotel.
Cooperative Advertising and Marketing Initiatives10 Varies On demand You must participate in the cooperative advertising programs and marketing initiatives designated by us.
Gift Cards11 Varies On demand
Intermediary Payments and Centralized Travel Agent Commission ("CTAC")12 Varies On demand This program facilitates the payment of commissions to intermediaries, such as travel agencies, travel management companies, online travel agencies, and group intermediaries. We may offer optional programs at an additional cost. You may be required to "opt out" of certain optional programs if you do not wish to participate.
Marriott Digital Services13 Varies depending on the product or service selected On demand Marriott Digital Services offers a variety of marketing, digital, and ecommerce products and services to Company Brand Hotels. You must pay our then-current fees for the products and services that you select. Participation in this program is generally optional, but may be required in certain circumstances, including if you or your management company is new to Marriott.
Enhanced On-Platform Website Maintenance $125 per month On demand We will develop and maintain a standard (core) webpage for your hotel on our designated web platform at no cost to you. You will incur this charge if you request an optional enhanced
TYPE OF FEE AMOUNT DUE DATE* REMARKS
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(narrative) on-platform webpage for your hotel.
Transaction-Based Media14 8% of applicable gross room revenues, not to exceed $200 per stay On demand You pay only if the guest stays at the hotel.
Technology5
LightSpeed Upgrades/Training $15,000 to $25,000, depending on the size of your hotel and its technology requirements On demand If additional training or database management is needed in connection with an upgrade, you are responsible for the travel, meal, and lodging expenses of the training personnel.
Point-of-Sale ("POS") System $17 to $30 per month per POS workstation for software, technical support, and "patching" services On demand You must use the POS system that we designate. These amounts include the cost of "patching services," through which required security upgrades and system optimizing upgrades are installed on the POS system. Optional add on functions may be available at an additional cost.
Property Management System ("PMS") Application Patching $210 to $220 per month On demand This charge covers the cost of "patching services," through which required security upgrades and system-optimizing upgrades are installed in the PMS.
Email $11.80 to $14.75 per month per email address On demand This email solution includes a web-based version of Microsoft Office and support including version updates, patching, and security and device management software. At least one email solution is required per hotel. The Program Services Contribution covers the cost of up to 7 emails per hotel. Optional add-on functions may be available at an additional cost.
Continent Field Support $7.34 to $13.75 per device per month On demand Continent field support is a centralized support service for certain required electronic systems. The Program Services Contribution covers the cost of this support service for up to 12
TYPE OF FEE AMOUNT DUE DATE* REMARKS
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devices. We may assess this charge on a per-user, per-hotel, or other basis in the future.
Information Security Managed Detection and Response Services15 $39.00 per device per year On demand You must purchase endpoint detection response software ("EDR") and use a managed detection and response service ("MDR") to monitor endpoints for suspicious activity. The EDR and MDR must comply with our standards. If you use our approved vendor, the Program Services Contribution will cover the cost of EDR and MDR for up to 12 devices. If you choose to use an alternate vendor, you must provide us with periodic certifications that you have obtained compliant EDR and MDR for every device at your hotel that accesses guest data.
Unauthorized Electronic Identifier $100 per day an unauthorized email address, domain name, mobile application name, website, or other electronic identifier is in use On demand You are prohibited from using our trademarks or any confusingly similar trademarks in any email address (except as we authorize), domain name, mobile application name, website, or any other electronic identifier.
Credit Card Processing $0.047 per settlement transaction for credit card processing On demand This amount includes the cost of authorization, settlement, and tokenization for each credit card transaction.
Server Management $28.13 to $119.03 per server per month On demand This charge covers the cost of our support for servers that are on the Marriott network.
Mobile Device and Application Management and Mobile Application Access $2.75 to $3.00 per device per month On demand This program allows authorized users to acc

Source: Item 1 — Fees for Other Services (FDD pages 39–71)

What This Means (2025 FDD)

I am unable to provide the costs associated with indemnification for a Delta Hotels By Marriott franchise, according to the 2025 Franchise Disclosure Document. While Item 1 outlines various fees that a franchisee might encounter, such as accounting audit fees, interest on overdue amounts, and costs and attorneys’ fees, it does not specifically mention indemnification costs. The fees listed vary and are dependent on specific circumstances, such as underpayments discovered during an audit or failure to comply with the franchise agreement. Some fees are fixed, like the mCredit customer credit reference reports at $12 per report, while others, like cooperative advertising and marketing initiatives, vary.

Given the absence of specific indemnification costs in Item 1, it is important for potential Delta Hotels By Marriott franchisees to review Item 8 and Item 17 of the 2025 FDD, which may contain information regarding indemnification obligations and related expenses.

Prospective franchisees should consult with legal and financial advisors to fully understand their potential liabilities and financial obligations related to indemnification. It would be prudent to ask the franchisor directly for a comprehensive explanation of all situations in which a franchisee may be required to indemnify the franchisor, as well as an estimate of the potential costs associated with these obligations. Understanding these costs is crucial for making an informed investment decision.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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