Regarding ownership of the Hotel for Delta Hotels By Marriott, what does the Owner represent and warrant?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
14. REPRESENTATIONS AND WARRANTIES
- A. Existence. Each party represents and warrants that it (i) is duly formed, validly existing and in good standing under the laws of the jurisdiction of its formation; and (ii) has and will continue to have the ability to perform its obligations under this Agreement.
- B. Authorization. Each of Franchisor, Franchisee and Owner represents and warrants that the execution and delivery of this Agreement and the performance of its obligations under this Agreement: (i) have been duly authorized; (ii) do not and will not violate, contravene or result in a default or breach of (a) any Applicable Law, (b) its governing documents or (c) any agreement, commitment or restriction binding on the relevant party; and (iii) do not require any consent that has not been obtained by the relevant party.
- C. Restricted Person; Competitor. Owner represents and warrants, and will ensure throughout the Term, that (i) neither Owner, nor the Person(s) that Control Owner, nor any of its or the Hotel's funding sources is a Restricted Person and (ii) neither Owner nor any of its Affiliates is a Competitor.
- D. Ownership of Owner. Owner represents and warrants that its Interestholders are completely and accurately listed in Exhibit A. If there have been changes, or on request of Franchisor, Owner will provide a list of the names and addresses of the Interestholders and documents necessary to confirm such information and update Exhibit A.
- E. Ownership of the Hotel. Owner represents and warrants that it is the sole owner of the Hotel and holds good and marketable fee title to the Approved Location.
Source: Item 11 — FINANCING OF THE HOTEL (FDD pages 259–279)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, the Owner of a Delta Hotels By Marriott franchise makes several representations and warranties regarding the hotel's ownership. Specifically, the Owner represents and warrants that it is the sole owner of the hotel and holds good and marketable fee title to the Approved Location. This means the Owner legally affirms they have the exclusive right to possess, use, and dispose of the property and that the title is free from reasonable doubt or defects that could lead to litigation or impair its marketability.
Delta Hotels By Marriott also requires the Owner to represent and warrant several other conditions. The Owner must represent and warrant that it is duly formed, validly existing, and in good standing under the laws of its jurisdiction, and has the ability to perform its obligations under the agreement. The Owner also confirms that the execution and delivery of the agreement is duly authorized and does not violate any laws, governing documents, or binding agreements.
Furthermore, the Owner represents and warrants that neither the Owner, nor the persons that control the Owner, nor any of its or the Hotel's funding sources is a Restricted Person, and neither Owner nor any of its Affiliates is a Competitor. The Owner also represents and warrants that its Interestholders are completely and accurately listed in Exhibit A, and will provide updates to this list as needed or upon Franchisor request. These representations and warranties are crucial for Delta Hotels By Marriott to ensure the legal and financial integrity of its franchisees and to protect its brand and reputation.