Fairfield by Marriott
Bottom line
- Total investment $12.3M – $34.5M including a $75K franchise fee, 5.5% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 57/100. SBA loan default rate of 0.0% across 98 loans (below the industry average).
- 20 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 Fairfield 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 3-4 star limited-service hotels under the Fairfield brand, managing daily operations including housekeeping, front desk, maintenance, and guest services. They pay 5.5% of gross room sales as royalty to Marriott while bearing full operational costs, capital maintenance, and liability exposure. Franchisees rely on Marriott's centralized reservation system, loyalty program, and brand standards to drive occupancy.
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 · 5 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
Fairfield presents meaningful investment risk due to massive capital requirements without financial transparency, anemic unit growth, severe data security litigation legacy, unprotected territory enabling brand cannibalization, and antitrust exposure.
Score breakdown · what drove the 57 / 100 rating
- 01MINORSignificant capital requirement ($12.3M–$34.5M) with no Item 19 financial disclosure to validate ROI expectations
- 02MINORStagnant unit growth (1.5% YoY) suggests market saturation and declining franchise appeal
- 03HIGHMulti-jurisdictional data breach litigation (2018 Starwood incident) with ongoing FTC, ICO, KVKK, OPC, and OAIC investigations creates reputational and compliance risk
- 04MINORUnprotected territory allows Marriott to saturate markets with competing Marriott brands, cannibilizing franchisee revenue
- 05HIGHAntitrust litigation regarding STR reports and pricing software indicates potential franchisor control over competitive positioning
- 06MINORMultiple class action lawsuits on resort/destination fees and credit card processing create operational and legal exposure for individual properties
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
100 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Fairfield by Marriott · FDD (2026) PDF