Under what conditions will the Delta Hotels By Marriott Participation Agreement automatically terminate?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
If at any time Participant ceases to be a Franchisee of Customer, Customer shall notify AT&T. Within thirty (30) calendar days after Customer notifies AT&T that the Participant ceases to be a Franchisee of Customer or AT&T notifies Customer that a Participant has failed to abide by its obligations under a Participation Agreement, AT&T will notify Participant that the Participant is no longer eligible to continue to receive Services under this Participant Agreement. Participant will migrate to another Agreement or AT&T will terminate Services pursuant to Section 16 within (6) six months. AT&T shall have the right, prior to accepting an order from Participant, to confirm Participant's creditworthiness.
Source: Item 7 — Franchisor reserves the right to challenge the applicability of any law that declares provisions in the Agreement void or unenforceable. (FDD pages 288–363)
What This Means (2025 FDD)
According to Delta Hotels By Marriott's 2025 Franchise Disclosure Document, the AT&T Franchisee Participation Agreement will terminate if the Participant ceases to be a Franchisee of Customer (Marriott). AT&T will notify the Participant that they are no longer eligible to receive services under the agreement within thirty calendar days after Marriott notifies AT&T that the Participant is no longer a franchisee, or if AT&T notifies Marriott that a Participant has failed to abide by its obligations under a Participation Agreement.
Following such notification, the Participant has six months to either migrate to another agreement with AT&T or have their services terminated. AT&T also retains the right to confirm the Participant's creditworthiness before accepting an order from them.
This condition is important for prospective Delta Hotels By Marriott franchisees to understand, as it directly links their eligibility for AT&T services under the Participation Agreement to their status as a franchisee. Losing the franchise would trigger the termination of the AT&T services agreement, requiring the franchisee to find alternative arrangements or face service termination.