What are the reasons Delta Hotels By Marriott may withhold consent to a proposed management company?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may withhold its consent to any proposed management company that Franchisor determines in its Reasonable Business Judgment: (i) is not financially capable; (ii) does not have the managerial skills or operational capacity required to operate «brand» hotels; or (iii) is not otherwise able to comply fully with the requirements of the franchise agreement.
Source: Item 6 — Obligations of Franchisee.** Franchisee agrees to the following: (FDD pages 363–513)
What This Means (2025 FDD)
According to Delta Hotels By Marriott's 2025 Franchise Disclosure Document, Delta Hotels By Marriott has the right to withhold consent for a proposed management company under specific circumstances. This is particularly relevant when a lender proposes a substitute manager for the hotel.
Delta Hotels By Marriott may withhold consent if it determines, using its Reasonable Business Judgment, that the proposed management company: (i) lacks the financial capability to operate the hotel, (ii) does not possess the necessary managerial skills or operational capacity to manage Delta Hotels By Marriott hotels, or (iii) is otherwise unable to fully comply with the requirements outlined in the franchise agreement.
This provision protects Delta Hotels By Marriott by ensuring that any management company operating a Delta Hotels By Marriott location meets certain standards of competence and compliance. For a prospective franchisee, this means that if a lender needs to step in and propose a new manager, the choice of manager is not solely at the lender's discretion but is subject to Delta Hotels By Marriott's approval based on these criteria.