Under what conditions can Marriott terminate the agreement with a Delta Hotels By Marriott franchisee?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
enewal 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 franchise agreement if the franchisee is in default. In such cases, Marriott will provide the franchisee with a 30-day written notice of termination.
Furthermore, the document states that 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 sale of the hotel, the agreement may be assigned according to the terms of Marriott's consent or approval.
Delta Hotels By Marriott also acknowledges that Marriott may incur damages upon termination of the agreement under Paragraph 7.b or Paragraph 7.c, referred to as an "Event Termination." In the event of such termination, Marriott is entitled to recover from the franchisee any prior costs and future costs associated with the hotel's participation in programs, as reasonably determined by Marriott. These costs are to be paid by the franchisee no later than the termination date of the agreement.