Does submitting an application to Delta Hotels By Marriott guarantee any rights to the applicant?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
Applicant acknowledges and agrees that:
(a) Applicant is submitting this Application either as the person or entity that will sign one or more Agreements, or as the person or entity that will control the proposed franchisee or area developer for each hotel, as applicable.
(b) Franchisor reserves the right to approve or deny this Application with respect to one or more hotels, in its sole discretion.
Applicant will not acquire any rights by virtue of the submission of the Application whether or not Franchisor approves the Application.
Any expenses incurred by or on behalf of Applicant in connection with this Application or any approval of this Application (including without limitation any costs of constructing, renovating or operating the proposed hotel(s)) are at Applicant's sole risk and are not being made in reliance on any action of Franchisor.
- (c) Franchisor does not enter into oral agreements or understandings with respect to franchises or matters pertaining to the grant of a franchise.
Accordingly, there are no agreements or understandings whatsoever between Applicant and Franchisor with respect to the Application or any franchise.
- (f) Whether or not Franchisor approves the Application, Applicant does not have any exclusive territorial rights.
Franchisor and its affiliates may operate or grant others the right to operate the same brand(s) of hotel or other lodging facilities and other businesses at any location including locations proximate, adjacent or adjoining the site specified above.
Franchisor may consider applications from other applicants for any sites without liability to Applicant.
- (g) If Franchisor approves the Application, Applicant will not have any right to use the franchisor's trademarks, systems, or other intellectual property for each respective brand unless and until Franchisor and Applicant executes a franchise agreement authorizing Applicant to use the intellectual property associated with such brand at a particular hotel and the parties execute an Authorization to Open for the hotel.
Source: Item 23 — RECEIPTS (FDD pages 134–251)
What This Means (2025 FDD)
According to the 2025 Delta Hotels By Marriott Franchise Disclosure Document, submitting an application does not guarantee any rights to the applicant. Delta Hotels By Marriott retains the sole discretion to approve or deny the application for one or more hotels. The applicant acknowledges this and agrees that they will not acquire any rights simply by submitting the application, regardless of whether Delta Hotels By Marriott approves it.
Furthermore, any expenses incurred by the applicant during the application process, including costs related to constructing, renovating, or operating the proposed hotel, are at the applicant's sole risk. These expenses are not made in reliance on any action by Delta Hotels By Marriott. Delta Hotels By Marriott explicitly states that it does not enter into oral agreements or understandings regarding franchises, so there are no agreements between the applicant and Delta Hotels By Marriott concerning the application or any franchise until a franchise agreement is signed.
Even if Delta Hotels By Marriott approves the application, the applicant will not have any exclusive territorial rights. Delta Hotels By Marriott and its affiliates reserve the right to operate or grant others the right to operate similar hotels or other businesses at any location, including those near the applicant's proposed site. Delta Hotels By Marriott may also consider applications from other potential franchisees for any sites without incurring liability to the initial applicant. This underscores the non-binding nature of the application and the franchisor's freedom to pursue other opportunities.
If Delta Hotels By Marriott approves the application, the approval is conditional on the applicant maintaining legal control over the specific site described in the application. Should the applicant lose legal control of the site before the franchise agreement is executed, Delta Hotels By Marriott's approval becomes ineffective. In such a case, Delta Hotels By Marriott has no liability to the applicant, and the application fee will be retained by Delta Hotels By Marriott. If the applicant later regains control of the site or secures a different site, a new application must be submitted, starting the process anew.