D75/100FDD 2025
Delta Hotels by Marriott — Litigation & Risk
Lodging - Hotels & Motels · FDD Items 3, 4 & 5
Elevated Risk
15 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
15
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
75 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.
Total 7(a) loans
2
Government-backed loans issued
Default rate
—
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$7.0M
Avg loan size
$3.5M
Participating lenders
2
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
No
Franchisor can match any purchase offer when you try to sell
Governing law
Maryland
State whose law governs disputes — relevant if you're not based there
What drove the 75/100 rating
Risk Score Breakdown
- 01HIGHGoing concern status indicates material doubt about franchisor's ability to continue operations and support franchisees
- 02HIGHExtensive litigation portfolio including trademark disputes with Delta Air Lines, multiple class-action lawsuits, data security breaches affecting reservations, and franchisor-initiated collection actions suggests systemic operational and legal vulnerabilities
- 03MINOROnly 92 units with unknown growth trajectory in a mature hotel franchise segment raises questions about brand viability and franchisee recruitment ability
- 04MEDNo disclosed average revenue or net income figures prevent meaningful ROI analysis and suggest possible performance issues or franchisor reluctance to disclose unfavorable metrics
- 05HIGH2018 Starwood database breach with ongoing litigation indicates unresolved guest trust and cybersecurity issues that impact franchisee operations and liability exposure
- 06MINORMultiple resort fee and amenity fee legal disputes indicate franchisor-franchisee misalignment on revenue practices and potential guest dissatisfaction
Severity inferred from FDD text — not a regulatory or legal classification
Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.