Under what circumstances can Delta Hotels By Marriott immediately terminate the franchise agreement?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
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- the Hotel ceases to operate as a System Hotel;
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Franchisee engages in a pattern of underreporting amounts payable to Franchisor under this Agreement involving three or more months within any 24-month period;
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- a threat to public health or safety occurs from the condition of the Hotel or its operation, that in the opinion of Franchisor, could result in: (i) substantial liability; or (ii) an adverse effect on the Hotel, other System Hotels, the System or the Proprietary Marks and Franchisee fails to close the Hotel and remedy the condition on notice from Franchisor;
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- the Hotel fails to achieve the thresholds of performance established by the Quality Assurance Program and such failure has not been cured within the applicable cure period;
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- any Confidential Information is disclosed in breach of Section 12; or
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Franchisor sends Franchisee three or more written notices to cure the same or similar breach or default under this Agreement during any 24-month period, even if such breaches or defaults have been cured.
D. any Marriott Agreement is in breach beyond any applicable cure period, is in default, or is terminated based on a breach by or default of Franchisee or its Affiliates (or any Owner referenced in Item 17 of Exhibit A); or
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Franchisee or any Interestholder in Franchisee, or any officer, director or employee of Franchisee, is convicted of a Serious Crime or is engaged in conduct that may adversely
Source: Item 23 — RECEIPTS (FDD pages 134–251)
What This Means (2025 FDD)
According to the 2025 Delta Hotels By Marriott Franchise Disclosure Document, Delta Hotels By Marriott can terminate the franchise agreement without providing an opportunity to cure under several circumstances. These include if the hotel ceases to operate as a System Hotel, or if the franchisee engages in a pattern of underreporting amounts payable to Delta Hotels By Marriott involving three or more months within any 24-month period.
Immediate termination is also possible if a threat to public health or safety occurs from the condition of the hotel or its operation, which, in the opinion of Delta Hotels By Marriott, could result in substantial liability or an adverse effect on the Hotel, other System Hotels, the System or the Proprietary Marks, and the franchisee fails to close the Hotel and remedy the condition after receiving notice from Delta Hotels By Marriott. Further grounds for immediate termination include the disclosure of any Confidential Information in breach of Section 12 of the agreement, or if Delta Hotels By Marriott sends the franchisee three or more written notices to cure the same or similar breach or default under the Agreement during any 24-month period, even if such breaches or defaults have been cured.
Delta Hotels By Marriott can also immediately terminate the agreement if any Marriott Agreement is in breach beyond any applicable cure period, is in default, or is terminated based on a breach by or default of Franchisee or its Affiliates. Additionally, if the Franchisee or any Interestholder in Franchisee, or any officer, director or employee of Franchisee, is convicted of a Serious Crime or is engaged in conduct that may adversely affect the Hotel, the System, any Franchisor Product or Franchisor, and such Person is not terminated from its relationship with Franchisee, Delta Hotels By Marriott has grounds for immediate termination.