Fairfield by Marriott Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Fairfield by Marriott is a limited-service hotel franchise in Marriott's upper-midscale tier. Franchisees develop and operate individual hotels, running daily operations on Marriott's reservation, loyalty, and brand-standard systems.
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 0.0% charge-off rate across 86 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $12.3M – $34.5M
- 44th pct Lodging
- Avg gross sales
- N/A
- 1st pct Lodging
- Royalty
- 5.5%
- 31st pct Lodging
- Units
- 1,191
- 55th pct Lodging
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- Total investment $12.3M – $34.5M including a $75K franchise fee, 5.5% ongoing royalty.
- 2025 total revenues include $96,599K net fee revenues plus $50,883K cost reimbursement revenue. Net fee revenues alone = $96,599K. Net income = $79,457K.
- Verdict A (Strongest tier), verdict score 88/100 (higher is better). SBA loan charge-off rate of 0.0% across 86 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- 16 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
Corporate structure & franchisor financials
- Legal entity
- MIF, L.L.C.
- Parent company
- Marriott International, Inc.
- CEO title
- Director, Chief Executive Officer, and President
- Anthony Capuano
- 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
- CEO
- Anthony Capuano
- Headquarters
- MD
- Founded
- 1987
- FDD year
- 2026
- States available
- 50
Can you afford it, and what does the money buy?
Entry cost runs 129% above the typical lodging franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown17 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
- Middle of category vs category
- Liquid capital req'd
- $240K – $550K
- Top 40% of category vs category
- Franchise fee
- $75K – $75K
- Top 40% of category vs category
- Royalty
- 5.5%
- percentage · 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 |
| Training fee | $55K |
| Transfer fee | $150K |
| Total fee load | 8.0% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
Financial Performance
2025 total revenues include $96,599K net fee revenues plus $50,883K cost reimbursement revenue. Net fee revenues alone = $96,599K. Net income = $79,457K.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 8.0% — below the Lodging average of 10.3%.
Disclosure
Item 19 reports "occupancy_rate_and_ADR" rather than annual gross sales. Not directly comparable across brands.
Operator retention
System roughly stable (+3.4% 3-year CAGR) with 1,191 units.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Lodging averages
How Fairfield by Marriott Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,191
- Opened
- 32
- Last reporting year
- Closed
- 0
- Terminated
- 5
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 6
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.8%
- Company-owned
- 5
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +3.4%
- Net unit change over 3 years
- 3-yr CAGR
- +3.4%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 24
- Closed (3yr)
- 0
- Terminated (3yr)
- 10
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 56
- 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
- 86
- Loan volume
- $323.5M
- Median loan
- $3.8M
- average
- Charge-off rate
- 0.0%
- 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)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 50
- Defaults
- 0
- Typical loan rate
- 6.5%
- avg rate to borrowers
- vs industry
- N/A
- Jobs supported
- N/A
- Lender concentration
- 8%
- top lender's share
Vintage analysis
Fairfield by Marriott charge-off rate by loan vintage
Top lenders financing Fairfield by Marriott franchisees
Showing 3 of 50 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Fairfield by Marriott's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 20 states
- Startup risk premium and job creation velocity
- SBA 504 real estate/equipment data
Instant access. No subscription.
With a 0.0% charge-off rate across 86 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
Extensive litigation primarily related to 2018 Starwood data security breach (class actions, regulatory investigations, settlements totaling $52M+ to state AGs, £18.4M to UK ICO); resort/destination fee investigations and settlements; antitrust cases (STR data sharing, Amadeus Demand360); personal injury negligence; franchisee fee disputes. Many cases settled or concluded.
Largest disclosed settlement: $52,000,000
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: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 88 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Arbitration location | Baltimore, Maryland |
| Jury trial waiver | Yes |
| Governing law | MD |
| Litigation count | 16 |
View Item 3 litigation summary
Extensive litigation primarily related to 2018 Starwood data security breach (class actions, regulatory investigations, settlements totaling $52M+ to state AGs, £18.4M to UK ICO); resort/destination fee investigations and settlements; antitrust cases (STR data sharing, Amadeus Demand360); personal injury negligence; franchisee fee disputes. Many cases settled or concluded.
Items 10, 11
Training & Operations
- Classroom training
- 187 hrs
- On-the-job training
- 0 hrs
- Training location
- Franchisor-designated location; on-site and web-based
- Ongoing training
- Required
- Time to open
- 30 mo
- From signing to launch
- Site selection
- Franchisee
- 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 0.0% across 86 loans, meaning 0.0% 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 1,186 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 verdict score of 88 out of 100 (higher is better), 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.
For franchisors
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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.