Are the pre-opening fees paid to Delta Hotels By Marriott refundable?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
Listed below are certain estimated one-time non-refundable fees and reimbursements (excluding certain travel and related expenses) that you will pay to us on demand to open a Delta hotel. We may require you to prepay certain of these expenses. If you are acquiring or converting an existing hotel, your pre-opening fees and costs will vary depending upon, among other things, the systems in place and experience of personnel that are retained at the time of acquisition or conversion.
A. Computer Hardware and Software Systems
The costs for pre-opening training and services provided by us (not including costs discussed elsewhere in this Item 5 or costs incurred when purchasing an existing Delta hotel) generally range from $75,250 to $152,250, are subject to change, and are non-refundable. This amount includes: training on the use of the property management system, management and executive training, pre-opening on-site task force training, virtual training the opening authorization process, associate orientation materials,
pre-opening operations and sales and marketing support, and pre-opening revenue management/reservation system rate loading and consultation, as well as an estimate of the travel, meal, and lodging expenses for our trainers, which you must pay. We used the average travel, meal, and lodging expenses for our trainers last year in the range above. The range above excludes, and you must pay for the cost of, travel, meal, and lodging expenses incurred by you and your designated attendees to complete training programs that are not conducted on site. The total cost of pre-opening training and services may vary based on the size and location of your hotel, your experience, and the experience of your associates, as determined by us.
If you wish to extend the opening deadline after you have started construction, or if you wish to extend a construction start deadline after we have given you written notice freezing automatic extensions, you must submit a written request for an extension and pay a $10,000 extension fee. No extension will be granted for more than six months. If we do not approve your request, we will refund the $10,000 you submitted.
Franchise application fees are generally payable in full at the time you submit your franchise application and are non-refundable upon approval of your application. If you withdraw an application before it is approved, or if your application is not approved, we will refund the application fee for each unapproved hotel, less $10,000 per unapproved hotel and our outside counsel fees and expenses.
Source: Item 4 — BANKRUPTCY (FDD pages 34–39)
What This Means (2025 FDD)
According to the 2025 Delta Hotels By Marriott Franchise Disclosure Document, certain pre-opening fees are non-refundable, while others may be refundable under specific conditions. The document specifies that one-time pre-opening fees and reimbursements are generally non-refundable. These fees cover various aspects of opening a Delta Hotels By Marriott, including computer hardware and software systems, and pre-opening training and services.
The costs for pre-opening training and services typically range from $75,250 to $152,250 and are non-refundable. This range includes training on the property management system, management and executive training, on-site task force training, virtual training, associate orientation materials, operations and sales and marketing support, and revenue management/reservation system consultation. These costs also cover the travel, meal, and lodging expenses for Delta Hotels By Marriott trainers.
However, there are exceptions where fees may be refundable. For instance, if a franchisee seeks to extend a construction start deadline after automatic extensions are frozen and the request is not approved, the $10,000 extension fee will be refunded. Similarly, the franchise application fee is refundable if the application is withdrawn before approval or is not approved, although Delta Hotels By Marriott will deduct $10,000 per unapproved hotel, as well as outside counsel fees and expenses, from the refund. Therefore, prospective franchisees should carefully review the terms and conditions related to each fee to understand its refundability.
In summary, while many pre-opening fees are non-refundable, Delta Hotels By Marriott does provide some avenues for refunds under specific circumstances, particularly related to application fees and extension requests. Franchisees should clarify the refund policies for each specific fee with Delta Hotels By Marriott to fully understand their financial obligations and potential for reimbursement.