Under what condition is the Construction/Conversion fee refundable for Delta Hotels By Marriott?

According to the 2025 Franchise Disclosure Document, payments to Delta Hotels By Marriott are generally non-refundable, with one specific exception. The initial franchise application fee, detailed in Item 5 of the FDD, is refundable in part if Delta Hotels By Marriott does not approve the franchise application. This means that if a prospective franchisee's application is rejected by Delta Hotels By Marriott, a portion of the initial franchise application fee will be returned.

This refund policy is limited to the initial franchise application fee and does not extend to other fees or payments made during the franchise process. The FDD explicitly states that all other payments to Marriott are non-refundable. This is a standard practice in franchising, as franchisors typically incur costs in processing applications and providing initial support to franchisees.

Prospective Delta Hotels By Marriott franchisees should be aware of this policy and factor it into their financial planning. It is crucial to understand which fees are refundable and under what conditions, as outlined in the FDD. Franchisees should also inquire about the specific amount of the initial franchise application fee that is refundable in the event of non-approval to fully understand the financial implications.