What is the purpose of the ownership chart in the Delta Hotels By Marriott franchise application?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
Instructions for Completing the Ownership Chart
- At a minimum, you must include any individual, group of individuals, or entity that collectively, directly or indirectly, "controls" Applicant Entity, or owns 25% or more of the Applicant Entity. "Control" is as defined in the form franchise agreement attached to the FDD.
- If no individual, group of individuals, or entity owns 25% or more, or if you are unsure, list all individuals or entities with a direct or indirect ownership interest in Applicant Entity.
- You must include the ownership percentage for each individual or entity.
- If your ownership structure includes multiple entities and you are unsure of the indirect ownership percentages of the Applicant Entity, provide a breakdown of their ownership below the Applicant Entity as needed to reflect cumulative ownership or attach an organizational chart that illustrates the full ownership structure.
Providing complete and accurate information will help avoid delays in processing your application.
Source: Item 23 — RECEIPTS (FDD pages 134–251)
What This Means (2025 FDD)
According to the 2025 FDD, Delta Hotels By Marriott requires an ownership chart as part of the franchise application to fully understand the ownership structure of the applicant entity. This chart helps Delta Hotels By Marriott identify all individuals, groups, or entities that directly or indirectly control the applicant or own 25% or more of it. If no single entity owns 25% or more, the franchisee must list all individuals or entities with any direct or indirect ownership interest.
The ownership chart must include the ownership percentage for each individual or entity involved. If the ownership structure involves multiple entities and the indirect ownership percentages are unclear, the applicant must provide a breakdown of ownership or attach an organizational chart to illustrate the complete ownership structure. This requirement ensures that Delta Hotels By Marriott has a clear picture of who ultimately controls and benefits from the franchise.
Providing complete and accurate information in the ownership chart is crucial to avoid delays in the application process. Delta Hotels By Marriott needs this information to assess the suitability of the franchisee and ensure compliance with their franchise agreement terms. Furthermore, if there is common ownership between the franchisee and the management company for the hotel, the franchisee must describe this common ownership, including the level in the ownership structure at which it occurs and the percentage ownership interest involved.