Does the Trademark License Fee apply 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, payable on demand, but this fee is specifically waived for multi-family components operated in conjunction with a Delta Hotels By Marriott.
Delta Hotels By Marriott does charge other fees for hotels that include a residential, condominium, or multi-family component. These include a Residential Marketing License Fee, which is 3% to 4% of gross monthly rentals for a multi-family component, and a Residential Program and Service Bundle fee of $144 per year per unit sold, with an annual cap of $25,000. There are also fees for brand standard audits and potential charges if the residences fail to meet quality assurance thresholds.
This distinction in fees could be an important consideration for prospective franchisees evaluating the financial implications of including a multi-family component in their Delta Hotels By Marriott development. While the Trademark License Fee is waived, other fees such as the Residential Marketing License Fee will apply, impacting the overall revenue and expense structure.