Under what condition is the extension fee for Delta Hotels By Marriott refundable?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
- (ii) If Franchisee wishes to further extend such deadlines following Franchisor's notice in the preceding paragraph, or if Franchisee wishes to extend the Opening Deadline after construction of the Hotel has commenced, Franchisee will make a written request giving the reasons for the delay. If the delay is caused by a Force Majeure Event (excluding, for the avoidance of doubt, unavailability of financing), Franchisor will equitably extend such deadlines. If the delay is not caused by a Force Majeure Event, Franchisor may, in its sole discretion, extend such deadlines and require Franchisee to pay its then-current extension fee. The extension fee is nonrefundable unless Franchisor declines to grant the requested extension. No extension under this Section 1.C.(ii) will be granted for more than six months.
Source: Item 23 — RECEIPTS (FDD pages 134–251)
What This Means (2025 FDD)
According to Delta Hotels By Marriott's 2025 Franchise Disclosure Document, the extension fee is generally nonrefundable. However, there is one specific circumstance under which a refund is possible. If a franchisee requests an extension to construction or opening deadlines, and Delta Hotels By Marriott declines to grant the requested extension, then the extension fee will be refunded to the franchisee. This condition applies when the delay is not caused by a Force Majeure Event, such as natural disasters or other unavoidable circumstances.
This provision is important for prospective Delta Hotels By Marriott franchisees because it clarifies the financial risk associated with requesting an extension. While franchisees may need to request extensions due to unforeseen delays, they should be aware that the extension fee is only refundable if Delta Hotels By Marriott denies the extension request. This policy encourages franchisees to carefully assess their project timelines and manage construction or renovation schedules effectively to minimize the need for extensions.
In the event that a franchisee's extension request is denied, receiving a refund of the extension fee can help mitigate some of the financial burden. However, franchisees should still be prepared to address the underlying issues causing the delay and understand the potential consequences of not meeting the original deadlines. It is advisable for franchisees to maintain open communication with Delta Hotels By Marriott regarding any potential delays and to understand the criteria the company uses when evaluating extension requests.