Does Delta Hotels By Marriott have standard form documents for loan guaranties?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
Because we generally do not offer loan guaranties, if we do offer to make a contingent guaranty of a loan provided to you by a third-party lender, the terms and conditions of such guaranty may vary, such as the amount of the guaranty (for example, a percentage of the principal balance of the loan or a percentage of the hotel development costs), your repayment obligations, the guaranty fee, interest, fees, costs, penalties, security interests, default provisions, and requirements for a personal guaranty. You may be required to sign certain documents in connection with the loan guaranty, such as a Credit Enhancement Commitment Letter, Reimbursement Agreement, Equity Pledge, and Guaranty. Because the terms of financing arrangements, guaranties, and related documents vary, we do not have standard form documents but have included certain sample financing agreements in Exhibit Q for informational purposes only. These documents are samples, and the final documents may vary considerably depending upon which lender you select, the terms of the loan, and other lender requirements.
Source: Item 10 — FINANCING (FDD pages 82–101)
What This Means (2025 FDD)
According to the 2025 FDD, Delta Hotels By Marriott generally does not offer loan guaranties. However, in limited circumstances, Delta Hotels By Marriott may offer credit support in the form of a contingent guaranty of a portion of a loan from a third-party lender, or they may make a mezzanine loan. These instances are at Delta Hotels By Marriott's sole discretion. Factors considered include market penetration opportunities, the hotel's size and location, the economic and financial environment, the cost to complete development or conversion, whether the credit support aids in successful development, the franchisee's willingness to grow the system, and whether the franchisee meets Delta Hotels By Marriott's criteria.
Because Delta Hotels By Marriott generally does not offer loan guaranties, the terms and conditions of any guaranty may vary. This includes the guaranty amount (e.g., a percentage of the principal balance or hotel development costs), repayment obligations, guaranty fee, interest, fees, costs, penalties, security interests, default provisions, and personal guaranty requirements. Franchisees may be required to sign documents like a Credit Enhancement Commitment Letter, Reimbursement Agreement, Equity Pledge, and Guaranty.
Because the terms of financing arrangements, guaranties, and related documents vary, Delta Hotels By Marriott does not have standard form documents. However, the FDD includes sample financing agreements in Exhibit Q for informational purposes only. These are samples, and the final documents may vary considerably depending on the lender, loan terms, and other lender requirements. Therefore, prospective franchisees should carefully review any financing documents and understand that the samples provided are not necessarily indicative of the final terms they may receive.