Is the Trademark License Fee applicable to a multi-family component at Delta Hotels By Marriott?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
| Residential Marketing License Fee | For a Residential or Condominium Component: 4% of the total gross sales price for each unit For a Multi-Family Component: 3% to 4% of gross monthly rentals | Payable in full upon closing the sale of the unit | |
|---|---|---|---|
| Residential Program and Service Bundle19 | $144 per year per unit sold, with an annual cap of $25,000 | On demand | The Residential Program and Service Bundle covers the cost of certain mandatory programs, systems, and services, as described in Note 19. |
| Trademark License Fee | $1,000 per unit per year | On demand | This fee does not apply to a multi family component. |
Source: Item 1 — Fees for Other Services (FDD pages 39–71)
What This Means (2025 FDD)
According to Delta Hotels By Marriott's 2025 Franchise Disclosure Document, the Trademark License Fee does not apply to a multi-family component. The standard Trademark License Fee is $1,000 per unit per year.
The document specifies fees applicable if a Delta Hotels By Marriott location includes residential, condominium, or multi-family components. These fees cover various aspects, including marketing, programs, services, and audits related to the residential part of the property.
This clarification is important for prospective franchisees considering incorporating a multi-family component into their Delta Hotels By Marriott franchise, as it affects the overall cost structure and financial planning. Franchisees should carefully review all the fees associated with residential components to understand their financial obligations fully.