Under what condition can Marriott terminate the Delta Hotels By Marriott agreement?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
l at least ninety (90) days in advance of the expiration of the then-current term.
- b. In the event that Franchisee is in default under this Agreement, Marriott may terminate this Agreement by giving thirty (30) days' written notice to Franchisee.
- c. Subject to Section 7.d, Franchisee may terminate this Agreement by giving ninety (90) days' written notice to Marriott.
- d. This Agreement will immediately terminate upon termination of the Franchise Agreement; except in the event that Marriott consents to or approves the transaction (including a sale of the Hotel or other transfer requiring the consent of Marriott) pursuant to which the Franchise Agreement is terminated, in which case this Agreement may be assigned as set forth in any such consent or approval.
- e.
Source: Item 6 — Obligations of Franchisee.** Franchisee agrees to the following: (FDD pages 363–513)
What This Means (2025 FDD)
According to the 2025 Delta Hotels By Marriott Franchise Disclosure Document, Marriott can terminate the agreement if the franchisee is in default. In such cases, Marriott must provide the franchisee with a 30-day written notice of termination.
Conversely, the franchisee also has the option to terminate the agreement by providing Marriott with a 90-day written notice, subject to certain conditions. The agreement will also terminate immediately upon the termination of the Franchise Agreement, unless Marriott consents to the transaction that leads to the Franchise Agreement's termination and allows for the assignment of the agreement.
Furthermore, the FDD states that Marriott may incur damages upon the termination of the agreement under the aforementioned conditions. These damages may include costs and expenses related to the hotel's participation in various programs, which Marriott may seek to recover from the franchisee. The franchisee is obligated to pay these costs, which are considered a reasonable estimate of fair compensation for Marriott's losses due to the early termination.