What role must a general manager play in the operation of a Delta Hotels By Marriott franchise?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
We require franchisees to operate the hotel or to retain an approved management company consented to by us (Franchise Agreement – Section 8.1). A general manager who has successfully completed our training program must directly supervise the business on the premises. We require the general manager and other managers to devote full time to the management and operation of the hotel.
We may determine that you are not qualified to operate your hotel. In making such determination we will review, among other things, your managerial and operational experience, skills, capacity, capabilities, and philosophy to determine whether, based on our experience as a franchisor, owner, and operator of hotels, we believe you will be able to operate your hotel in accordance with the standards and the franchise agreement. If we determine that you are not qualified to operate your hotel, you will be required to hire a management company to operate your hotel. In certain circumstances, we may allow you to participate in a franchise management training program. We may include certain provisions in your franchise agreement that will require you to retain a third-party management company if you fail to meet certain quality assurance requirements.
Even if we determine that you are qualified to operate your hotel, you may desire nonetheless to hire a management company to operate your hotel. You must obtain our consent before you hire a proposed management company to operate your hotel. We have the right to approve any new or replacement management company and the right to review any management agreement between you and a management company. The management agreement must be subject to the terms and provisions of the franchise agreement.
You and the management company must operate the hotel in conformity with the franchise agreement and our standards. We have the right to require you to replace the management company or terminate the franchise agreement if the management company fails to operate the hotel in strict compliance with the franchise agreement.
We do not require the on-premises management company or general manager to have an equity interest in the franchised business.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 109–110)
What This Means (2025 FDD)
According to Delta Hotels By Marriott's 2025 Franchise Disclosure Document, if a franchisee chooses to operate the hotel themselves rather than using an approved management company, a general manager is essential. This general manager must have successfully completed Delta Hotels By Marriott's training program and is required to directly supervise the business operations on the premises. Furthermore, Delta Hotels By Marriott mandates that the general manager, along with other managers, devote their full time to the management and operation of the hotel.
Delta Hotels By Marriott emphasizes the importance of qualified management, as they may assess a franchisee's capabilities to operate the hotel. This assessment includes reviewing managerial experience, skills, and overall operational philosophy. If Delta Hotels By Marriott determines that a franchisee is not qualified, they will be required to hire a management company. In some cases, the franchisee may be allowed to participate in a franchise management training program. Additionally, the franchise agreement may include provisions that require the franchisee to retain a third-party management company if certain quality assurance standards are not met.
Even if a franchisee is deemed qualified to operate the Delta Hotels By Marriott hotel, they may still choose to hire a management company. However, this decision requires prior consent from Delta Hotels By Marriott, including approval of the management company itself and a review of the management agreement. The management agreement must align with the terms and provisions of the franchise agreement. Both the franchisee and the management company are obligated to operate the hotel in accordance with the franchise agreement and Delta Hotels By Marriott's standards. Failure of the management company to strictly comply with the franchise agreement gives Delta Hotels By Marriott the right to demand a replacement of the management company or even terminate the franchise agreement.
Notably, Delta Hotels By Marriott does not require the on-premises management company or the general manager to have an equity interest in the franchised business. This is a fairly common practice in the hotel franchising industry, as it allows for professional management without necessarily requiring ownership stake.