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B55/100FDD 2026

Marriott Hotel / JW Marriott — Litigation & Risk

Lodging - Hotels & Motels · FDD Items 3, 4 & 5

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Elevated Risk

20 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
20
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
55 / 100
FranchiseVerdict composite
Rating
MODERATE
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
6
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

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 55/100 rating

Risk Score Breakdown

  1. 01MINORMinimal unit growth (2.0% YoY) suggests market saturation or franchisee dissatisfaction in luxury hotel segment
  2. 02MINORNo Item 19 financial disclosure prevents validation of actual franchisee profitability claims despite 6% + 3% royalty burden
  3. 03HIGHSignificant ongoing litigation from 2018 Starwood data breach, resort fee investigations, and antitrust claims creates operational and reputational risk
  4. 04MEDHigh capital barrier and 20-year commitment with no disclosed average net income creates asymmetric risk for franchisee vs. franchisor
  5. 05MINORLuxury hotel segment vulnerable to economic downturns, travel disruption, and labor cost inflation affecting already-thin margins

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.