AC Hotels by Marriott
Bottom line
- Total investment $18.2M including a $90K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 61/100. SBA loan default rate of 0.0% across 7 loans (below the industry average).
- 21 litigation matters disclosed in Item 3 — higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one AC Hotels by Marriott unit return on the cash you put in?
Unlevered ROIC · per unit
0%
Below typical band (30–60%)
Overview
About
Franchisees develop and operate upscale select-service hotel properties under the AC Hotels by Marriott brand, managing 24/7 front desk operations, housekeeping, maintenance, and guest services. Daily operations include revenue management, staff scheduling, brand compliance audits, and coordination with Marriott's loyalty and distribution systems while paying 6% of gross room sales in royalties.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 22 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
AC Hotels presents meaningful risks due to opaque financial performance data, active litigation exposures, lack of territorial protection, and capital-intensive model with unproven returns.
Score breakdown · what drove the 61 / 100 rating
- 01MEDNo Item 19 financial performance data disclosed — impossible to validate $18.2M investment ROI claims
- 02HIGHSignificant litigation portfolio including 2018 data breach class actions, regulatory investigations, and ongoing fee disputes affecting brand reputation
- 03MINORModest unit growth of 8.3% YoY suggests slower expansion and potential market saturation in select-service segment
- 04MINORNo territorial protection leaves franchisees vulnerable to company-owned or competing franchisee cannibalization
- 05MINORHigh capital requirement ($18.2M) with 6% royalty creates significant fixed cost burden without revenue guarantees
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
75 numbers
One-time purchase · CSV download · Validation questions included
FDD download
AC Hotels by Marriott · FDD (2025) PDF