About Delta Franchise
Delta is a franchise brand that began offering franchise opportunities in 2015.
The company has established a business model designed to serve its target market through a network of independently owned and operated locations, each backed by corporate training and operational support.
The franchise fee is $120,000, reflecting a premium investment level that includes comprehensive brand resources and territory rights.
Delta Franchise Cost & Fees
Minimum Investment
$67.7M
Average Investment
$89.4M
Maximum Investment
$111.1M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $120,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Room Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1.5% of gross room sales (as part of Program Services Contribution) | National brand fund |
| Total Investment Range | $67,749,630 – $111,108,030 | Includes build-out, inventory, working capital |
The investment range of $67.7M–$111.1M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Room Sales) and marketing fee (1.5% of gross room sales (as part of Program Services Contribution)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Application Fee | $120,000 | $120,000 |
| Pre-Opening Training, Revenue Management, Marketing & Digital Support, and Related Services | $75,250 | $152,250 |
| Property Management System, Reservation System, Yield Management System, and Sales and Catering System | $133,000 | $225,000 |
| Other Systems and Training | $42,000 | $135,000 |
| Market Feasibility Study | $15,000 | $25,000 |
| Real Estate | $0 | $0 |
| Building Permit, Tap, and Impact Fees | $0 | $0 |
| Building Construction | $54,090,000 | $90,150,000 |
| Kitchen and Laundry Equipment | $900,000 | $1,140,000 |
| Furniture and Fixtures | $5,370,000 | $6,870,000 |
| Technology Hardware & Software and Network Infrastructure | $720,000 | $1,710,000 |
| Operating Supplies | $959,100 | $1,245,500 |
| Professional Design Services | $2,700,000 | $4,500,000 |
| Insurance | $0 | $0 |
| Start-Up Costs | $1,440,000 | $2,250,000 |
| Hard Cost Contingency (10% of hard costs) | $0 | $0 |
| Food Safety and Sanitation Compliance | $280 | $280 |
| Opening Advertising | $115,000 | $165,000 |
| Additional Funds (first 3 months) | $1,050,000 | $2,400,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Greater of $150,000 or $500 per guestroom |
| Technology Fee | Varies, includes fees for POS system ($17-$30/month per workstation), EMPOWER licenses ($550/year per agent), Continent Field Support ($7.34-$9.50/month per device), Information Security Managed Detection and Response Services ($39/device/year), Credit Card Processing ($0.047/transaction), PC Security and Management ($13.81-$71.50/month per PC/Apple/server), Mobile Device Management ($9-$10/device/month), Lock System Software ($8-$11/guestroom/year), MESH ($305/year + $59 implementation fee). Some costs are covered by the Program Services Contribution for a limited number of devices. |
| Audit Fee | $1,350 to $4,500 per re-audit, replacement audit, or non-accountable audit (annual audit covered by Program Services Contribution) |
| Program Services Contribution | 2.16% of gross room sales + $45,000 per year + $380 per guestroom per year |
| Marriott Bonvoy | 4.2% of qualifying revenue + 1% of qualifying event revenue (up to $300 per event) |
| Learning & Development Bundle | $11.60 to $12.80 per guestroom per year |
| Red Zone Charge | $25 to $100 per guestroom (up to $50,000 per six-month period) + $2,500 per meeting (or $2,750 per guestroom + $2,750 per meeting prior to July 2024) |
| Best Rate Guarantee Non-Compliance | $50 to $500 per violation |
| GM Awards | $300 to $1,500 per hotel per year |
| Residential Marketing License Fee (if applicable) | 4% of total gross sales price for each unit (residential/condo) or 3%-4% of gross monthly rentals (multi-family) |
| Residential Trademark License Fee (if applicable) | $1,000 per unit per year |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Varies significantly by role and topic, ranging from 0.5 hours to 50 hours for initial training programs, with ongoing certifications. |
| Classroom Training | Varies by program, from 0.5 to 50 hours, primarily delivered virtually. |
| On-the-Job Training | None |
| Training Location | Web-based or at franchisor designated locations. |
| Additional Training | Additional training programs and courses may be required when systems and operating standards change. Optional leadership training programs are available ($1,000-$10,000 per participant). Mandatory Executive Orientation ($795-$1,095 per person), Franchisee Introduction to Marriott (FITM) for new-builds ($60,000), FITM-R for existing hotels ($60,000), Franchisee OnBoarding for New Development (FOND) ($20,000), and Above Property Immersion (API) ($20,000) may be required for new franchisees or those unfamiliar with the system. An Audit Program/GSS Improvement program ($20,000-$30,000) may be required for hotels in the Red Zone. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Varies, if granted, typically a radius or delineated by boundaries. |
| Description | Franchisees will not receive an exclusive territory and may face competition from other franchisees, company-owned/managed/leased outlets, or other distribution channels/brands controlled by Marriott or its affiliates. If a territory is granted, it will be non-exclusive, apply only to Delta Hotels, typically for five years or less, and will not include existing hotels, acquired chains, or residential products. The size and boundaries (e.g., radius, streets) will depend on the market and will not grant rights to develop additional hotels or enlarge the existing one. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years after the hotel opens as a system hotel |
| Transfer Fee | Greater of $150,000 or $500 per guestroom, plus a $16,000 Property Improvement Plan fee |
| Transfer Conditions | Transfers of the franchise agreement, the hotel, and controlling ownership interests require franchisor consent. The transferee must submit an application, pay the application fee, satisfy current owner qualifications, retain a qualified management company, sign a new franchise agreement (which may have different terms and require hotel upgrades), and pay all amounts owed to the franchisor. The franchisor also has a right of first refusal if the transfer is to a competitor. |
| Termination for Cause | Franchisor can terminate for curable defaults (e.g., failure to start/complete construction/renovation, failure to pay, non-compliance with standards, serious crime by personnel not terminated) if not cured within 30 days. Immediate termination can occur for non-curable defaults (e.g., insolvency, bankruptcy, foreclosure, becoming a Restricted Person, violation of law, affiliation with a Competitor, non-compliant transfers, cessation of operations, repeated underreporting, threat to public health/safety, failure to achieve quality assurance thresholds, or disclosure of confidential information). |
| Non-Compete Period | During the term of the franchise and under specific conditions after termination or expiration. |
| Non-Compete Details | During the franchise term, franchisees are prohibited from using any part of the hotel to divert business to or promote a different business, or from selling, leasing, or transferring the hotel or any ownership interest to a competitor without prior approval. After termination or expiration, if the hotel is damaged by casualty and a non-Company Brand hotel is operated at the site during the original term, liquidated damages are owed. The franchisor's right of first refusal to purchase or lease the hotel may also continue after termination under certain circumstances. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Franchisees are required to either operate the hotel themselves or hire a management company approved by Marriott International, Inc. A general manager, who must have successfully completed the franchisor's training program, is required to directly supervise the hotel's operations on-premises and, along with other managers, must dedicate full-time effort to the management and operation of the hotel. Marriott may require a franchisee to hire a third-party management company if the franchisee is deemed unqualified or fails to meet quality assurance requirements. Principals of the franchisee entity may be required to sign a personal guaranty of the franchisee's obligations. |
| Required Suppliers | Franchisor may designate suppliers for FF&E, Inventories, Fixed Asset Supplies, and certain food products, communication systems, and other goods/services. Exterior building signs must be purchased from approved vendors. The designated POS system must be used. Pepsi products are designated as the standard for certain beverages. |
| Supply Restrictions | Franchisees must use FF&E, OS&E, and other goods/services that conform to Marriott's standards and specifications. Marriott may specify particular models/brands available from only one manufacturer/supplier, or require purchases directly from Marriott or designated/approved sources. |
| Franchisor Revenue from Suppliers | In 2022, Marriott and its subsidiaries received approximately $29,833,312 from franchisees' required purchases, including retained unrestricted rebates and procurement service fees. This amount represents less than 0.14% of Marriott's total gross revenue of $20,773,000,000 for 2022. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Marriott International, Inc. generally does not offer direct or indirect financing or guarantee loans for franchised Delta Hotels. However, in limited, discretionary circumstances, Marriott may provide credit support through a contingent guaranty of a third-party loan or offer a mezzanine loan. Eligibility for such support depends on factors like market penetration, hotel size and location, economic conditions, development costs, franchisee commitment to system growth, and meeting current criteria. The terms of any such financing, including amounts, interest rates, security, and personal guarantees, would vary and be determined at the time of loan origination. Marriott also offers new development and diversity development incentive programs that can reduce application and franchise fees, and potentially include key money, for eligible franchisees. |
Delta Franchise Earnings — Item 19
Delta does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Delta does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Delta Litigation & Risk Flags
9 Pending Actions ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Delta System Growth
Total Units
87
Franchised
62
Company-Owned
25
Delta currently operates 62 franchised locations and 25 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 7 | 2 | 52 |
| 2021 | 8 | 3 | 57 |
| 2022 | 5 | 0 | 62 |
Transfers: 7 | Closures: 5
Franchisor Financials (Item 21)
Revenue
$20773.0M
Delta Franchise — FAQ
The total investment to open a Delta franchise ranges from $67,749,630 to $111,108,030, per their Franchise Disclosure Document. This includes the initial franchise fee of $120,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Delta charges a royalty fee of 5% of Gross Room Sales of gross sales, plus a 1.5% of gross room sales (as part of Program Services Contribution) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Delta Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Delta to ensure you have the most up-to-date version.
Delta does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Delta has been franchising since 2015. The FDD shows an investment range of $67,749,630-$111,108,030, a 5% of Gross Room Sales royalty, and includes an Item 19 earnings disclosure. There are 9 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $120,000 and the total investment ranges from $67,749,630 to $111,108,030 depending on location size and market. A minimum of $289,700 in liquid capital is required. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
Similar Hospitality & Travel Franchises
Interested in Delta?
Get free info on this franchise. We will send you a detailed FDD report by email.
Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Delta and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Delta or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com