What is the Reimbursement Agreement for Delta Hotels By Marriott franchisees?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
- I. Promptly, upon notice, (i) Franchisee shall reimburse Marriott for any Loss related to any Employment Based Claim of Service Provider for which Marriott shall be indemnified by Franchisee pursuant to Section 4.B, and (ii) Marriott shall reimburse Franchisee for any Loss related to any Employment Based Claim of the Service Provider for which Franchisee shall be indemnified by Marriott pursuant to Section 4.A.
Source: Item 6 — Obligations of Franchisee.** Franchisee agrees to the following: (FDD pages 363–513)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Delta Hotels By Marriott outlines a reimbursement agreement related to a Service Provider. Specifically, if a Service Provider makes an employment-based claim, the agreement dictates which party, Marriott or the franchisee, is responsible for covering the associated losses.
If the claim is one for which Delta Hotels By Marriott is indemnified by the franchisee, the franchisee must promptly reimburse Delta Hotels By Marriott for any related loss. Conversely, if the claim is one for which the franchisee is indemnified by Delta Hotels By Marriott, then Delta Hotels By Marriott will reimburse the franchisee for any loss.
This section clarifies the financial responsibilities of both the franchisee and franchisor regarding potential employment-based claims made by the Service Provider. It ensures that each party is held accountable for losses arising from claims for which they have provided indemnification. This type of clause is common in franchise agreements where the franchisor provides staff or services to the franchisee, helping to allocate risk and responsibility.