Fairfield by MarriottFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Fairfield by Marriott franchise requires a total initial investment of $12.3M – $34.5M, including a $75K franchise fee and an ongoing 5.5% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 1.1% charge-off rate across 225 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $12.3M – $34.5M
- 42nd pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 5.5%
- 31st pct Lodging
- Units
- 1,191
- 51st pct Lodging
- SBA default
- 1.1%
- system-wide median varies by category
Quick verdict · Lodging · color = vs category peers
Green = >15% above Lodging avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Only 1.1% of 225 SBA loans charged off, well below the 16% franchise average.
Franchising since 1998. Systems this mature have refined operations and brand recognition.
20 legal cases disclosed in the FDD. Read Item 3 before signing.
Large franchise systems benefit from brand recognition, supply chain leverage, and proven operations.
Bottom line
- Total investment $12.3M – $34.5M including a $75K franchise fee, 5.5% ongoing royalty.
- Item 19 discloses "Historical STR Performance Data" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict A (Top Quintile) with a risk score of 37/100. SBA loan charge-off rate of 1.1% across 225 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 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
- Legal entity
- MIF, L.L.C.
- Parent company
- Marriott International, Inc.
- Incorporated in
- DE
- HQ
- 7750 Wisconsin Avenue, Bethesda, Maryland 20814
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $147.5M
- vs $103.3M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
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.
- CEO
- Anthony Capuano
- Headquarters
- MD
- Founded
- 1987
- FDD year
- 2026
- States available
- 50
FDD Item 7 · 2026 filing · 17 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Application Fee | $75K | $75K | |
| Pre-Opening Training, Revenue Management, Marketing & Digital Support, and Related Servicesnot refundable | $55K | $55K | |
| Property Management, Reservation, Yield Management, Opportunity Management, and Other Systems | $100K | $152K | |
| Market Feasibility Study | $6K | $18K | |
| Real Estate | — | — | |
| Building Permit, Tap, and Impact Fees | — | — | |
| Building Construction | $113K | $202K | |
| Kitchen and Laundry Equipment | $2K | $3K | |
| Furniture and Fixtures | $13K | $18K | |
| Technology Hardware & Software and Network Infrastructure | $130K | $312K | |
| Operating Supplies | $162K | $250K | |
| Professional Design Services | $448K | $1.3M | |
| Insurance | — | — | |
| Start-up Costs | $2K | $4K | |
| Hard Cost Contingency (5% of hard costs) | — | — | |
| Opening Advertising | $25K | $50K | |
| Additional Funds (first 3 months) | $2K | $5K | |
| Total initial investment | $1.1M | $2.4M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $12.3M – $34.5M
- Near category avg vs category
- Liquid capital req'd
- $240K – $525K
- Better than avg vs category
- Franchise fee
- $75K – $150K
- Better than avg vs category
- Royalty
- 5.5%
- Gross Room Sales · typical 6–8%
- Ad fund
- 2.5%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.5% of gross sales |
| Marketing / ad fund | 2.5% of gross sales |
| Transfer fee | $150K |
| Total fee load | 8.0% of rev |
Financial Performance
This brand's FDD disclosed "Historical STR Performance Data" in Item 19 rather than annual gross sales. This metric cannot be directly compared across brands, so we omit it from rankings.
vs Lodging averages
How Fairfield by Marriott Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,191
- Opened
- 32
- Last reporting year
- Closed
- 8
- Turnover rate
- 0.7%
- Company-owned
- 5
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +1.5%
- Net unit change last year
- 3-yr CAGR
- +3.4%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 18
- Closed (3yr)
- 1,147
- Terminated (3yr)
- 10
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 81
- Reacquired (3yr)
- 2
- Franchisor bought back
- Termination rate
- 0.9%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 6 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 225
- Loan volume
- $695.3M
- Median loan
- $3.1M
- average
- Charge-off rate
- 1.1%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 50
- Defaults
- 1
Explore lender portfolios on Bank Reports or regional data on State Reports.
With a 1.1% charge-off rate across 225 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
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.
Litigation (Item 3)
2 case reference(s): 1 pending, 1 settled.
Largest disclosed settlement: $6
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 37 / 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
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Protected territory | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Termination notice | 30 days |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Maryland |
| Litigation count | 20 |
View Item 3 litigation summary
2 case reference(s): 1 pending, 1 settled.
Items 10, 11
Training & Operations
- Classroom training
- 187 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Offered
- Item 10
- POS system
- Marriott designated POS system
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Marriott designated POS system
Item 20 · call current owners
Franchisee Contacts
101 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Fairfield by Marriott · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Fairfield by Marriott franchise?
The total investment to open a Fairfield by Marriott franchise ranges from $12.3M – $34.5M, with an initial franchise fee of $75K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Fairfield by Marriott franchise owners earn?
Fairfield by Marriott does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Fairfield by Marriott's franchise failure rate?
Based on SBA 7(a) loan data, Fairfield by Marriott has a charge-off rate of 1.1% across 225 loans, meaning 1.1% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Fairfield by Marriott franchise locations are there?
As of their most recent FDD filing, Fairfield by Marriott has 1,191 total units in the United States, including 1,147 franchised units and 5 company-owned units. 32 new units were opened in the latest reporting year.
Is Fairfield by Marriott a good franchise to buy?
FranchiseVerdict rates Fairfield by Marriott as a A-grade franchise with a risk score of 37 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.