Under what condition will the Delta Hotels By Marriott agreement immediately terminate?

According to the 2025 Delta Hotels By Marriott Franchise Disclosure Document, the agreement will immediately terminate upon the termination of the Franchise Agreement. However, there is an exception: if Marriott consents to or approves the transaction that leads to the Franchise Agreement's termination, such as a hotel sale or transfer requiring Marriott's consent, the agreement may be assigned as outlined in the consent or approval. This means that if a franchisee sells their Delta Hotels By Marriott property and Marriott approves the sale, the franchise agreement might be transferred to the new owner instead of being terminated outright.

This provision is important for potential Delta Hotels By Marriott franchisees because it clarifies the circumstances under which their agreement can be immediately terminated. Franchisees should be aware that the termination of the Franchise Agreement, for any reason, will generally lead to the immediate termination of their agreement with Delta Hotels By Marriott. The exception provides some flexibility in cases where Marriott approves a transfer of ownership, but franchisees should not assume that their agreement will automatically be assigned to a new owner.

It is crucial for prospective franchisees to understand the conditions under which their agreement can be terminated, as this can have significant financial and operational implications. Franchisees should carefully review the terms of the Franchise Agreement and seek legal counsel to fully understand their rights and obligations in the event of a termination. Understanding these terms can help franchisees make informed decisions about their investment and plan for potential contingencies.