factual

What years are covered by the statements of income included in the Delta Hotels By Marriott FDD?

Delta_Hotels_By_Marriott Franchise · 2025 FDD

Answer from 2025 FDD Document

The related party transactions incurred interest at rates of 5.5%, 6.0%, and 3.0% for 2024, 2023, and 2022, respectively, based on the Internal Revenue Service Short-term Applicable Federal Rate. Interest income for the years ended December 31, 2024, 2023, and 2022 was $21,929, $20,097, and $8,441, respectively.

Corporate allocation costs for the years ended December 31, 2024, December 31, 2023, and December 31, 2022 was $1,712, $1,284, and $1,396, respectively.

During the years ended December 31, 2024, 2023, and 2022, the Company transferred three, nine, and 12 franchise agreements to Marriott, respectively.

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 132)

What This Means (2025 FDD)

According to the 2025 Delta Hotels By Marriott Franchise Disclosure Document, the financial statements include an allocation of costs necessary to operate MIF, L.L.C. as a stand-alone business. The FDD references specific years regarding related party transactions, corporate allocation costs, and franchise agreement transfers.

Specifically, the related party transactions incurred interest at rates of 5.5%, 6.0%, and 3.0% for 2024, 2023, and 2022, respectively. This information is based on the Internal Revenue Service Short-term Applicable Federal Rate. Interest income for these same years was $21,929, $20,097, and $8,441, respectively.

Corporate allocation costs for the years ended December 31, 2024, December 31, 2023, and December 31, 2022, were $1,712, $1,284, and $1,396, respectively. Additionally, during the years ended December 31, 2024, 2023, and 2022, the company transferred three, nine, and 12 franchise agreements to Marriott, respectively. Therefore, the statements of income included in the FDD cover the years 2022, 2023, and 2024.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.