Under what condition is the expansion fee for a Delta Hotels By Marriott refundable?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
All payments to Marriott are non-refundable except for the initial franchise application fee which, as described in Item 5, is refundable in part if we do not approve your application. Payments made to other parties may or may not be refundable based upon your agreements with them.
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, all payments to Marriott are non-refundable with one exception: the initial franchise application fee. The document specifies that this fee is refundable in part if 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 relatively standard in the franchise industry, as it protects potential franchisees from losing their entire initial investment if the franchisor deems them unsuitable. However, it is important to note that only the application fee is mentioned as potentially refundable, not any other fees associated with starting the franchise.
Prospective Delta Hotels By Marriott franchisees should carefully review Item 5 of the FDD, as referenced in the quote, to understand the specific conditions under which the application fee is refundable and the exact amount that would be returned. Additionally, franchisees should confirm whether the 'in part' refund covers a substantial portion of the fee or only a nominal amount.