TownePlace Suites by MarriottFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A TownePlace Suites by Marriott franchise requires a total initial investment of $13.1M – $38.5M, including a $75K franchise fee and an ongoing 5.5% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $13.1M – $38.5M
- 43rd pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 5.5%
- 31st pct Lodging
- Units
- 571
- 48th pct Lodging
- SBA default
- 0.0%
- 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
Franchising since 1996. Systems this mature have refined operations and brand recognition.
20 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $13.1M – $38.5M including a $75K franchise fee, 5.5% ongoing royalty.
- Item 19 discloses "ADR, OCC, and RevPAR" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict B (Above Average) with a risk score of 59/100.
- 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
- $103.3M
- vs $147.5M prior year
Overview
About
Franchisees own and operate extended-stay hotel properties under the TownePlace Suites brand, managing daily operations including housekeeping, front desk, maintenance, and guest services. Revenue derives primarily from nightly room rentals to business travelers and relocating families, with ancillary income from laundry, parking, and food services. Franchisees must maintain Marriott brand standards, pay 5.5% royalty on gross room sales, and manage significant capital expenditures for property upkeep and system upgrades over a 20-year commitment.
- CEO
- Anthony Capuano
- Headquarters
- MD
- FDD year
- 2026
- States available
- 48
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $75K | $75K |
| Working capital (3–6 mo) | $240K | $750K |
| Equipment, build-out, other | $12.7M | $37.7M |
| Total initial investment | $13.1M | $38.5M |
Source: TownePlace Suites by Marriott 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $13.1M – $38.5M
- Near category avg vs category
- Liquid capital req'd
- $240K – $750K
- Better than avg vs category
- Franchise fee
- $75K – $75K
- Better than avg vs category
- Royalty
- 5.5%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.5% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Transfer fee | $150K |
| Total fee load | 7.5% of rev |
Financial Performance
This brand's FDD disclosed "ADR, OCC, and RevPAR" 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 TownePlace Suites by Marriott Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 571
- Opened
- 52
- Last reporting year
- Closed
- 4
- Turnover rate
- 0.7%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Net growth (yr3)
- +9.2%
- Net unit change last year
- 3-yr CAGR
- +14.1%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 16
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 8 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 loan disclosures. This brand has only 9 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 9
- Loan volume
- $39.2M
- Median loan
- $5.0M
- 50th percentile
- 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
- 7
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into TownePlace Suites by Marriott's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 7 lenders with concentration factor
- Per-state charge-off rates across 7 states
- Startup risk premium and job creation velocity
- 6-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Extended-stay hotel franchise with substantial capital requirements, undisclosed profitability metrics, significant multi-jurisdictional litigation, and competitive territory vulnerabilities creates elevated investment risk.
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 59 / 100 rating
- 01MEDMassive capital requirement ($13M–$38M) with no disclosed average revenue or net income data to validate ROI projections
- 02HIGHExtensive litigation across multiple jurisdictions including data breaches, antitrust allegations, and consumer protection lawsuits that could impact brand reputation and operational costs
- 03MINORNo protected territory creates direct competition risk; franchisees could face cannibalization from adjacent company-owned or franchised properties
- 04MINOR5.5% royalty on gross room sales provides no relief during downturns and lacks transparency on actual profitability benchmarks
- 05HIGH9.2% YoY growth is modest for hospitality sector and does not offset litigation and reputational headwinds
- 06MINORAbsence of Item 19 (financial performance representations) prevents due diligence and suggests either poor unit economics or franchisor reluctance to disclose
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 |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | No |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Maryland |
| Litigation count | 20 |
Items 10, 11
Training & Operations
- Classroom training
- 187 hrs
- On-the-job training
- 0 hrs
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
100 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
TownePlace Suites by Marriott · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a TownePlace Suites by Marriott franchise?
The total investment to open a TownePlace Suites by Marriott franchise ranges from $13.1M – $38.5M, 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 TownePlace Suites by Marriott franchise owners earn?
TownePlace Suites 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 TownePlace Suites by Marriott's franchise failure rate?
SBA 7(a) loan charge-off data is not available for TownePlace Suites by Marriott (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many TownePlace Suites by Marriott franchise locations are there?
As of their most recent FDD filing, TownePlace Suites by Marriott has 571 total units in the United States, including 497 franchised units and 4 company-owned units. 52 new units were opened in the latest reporting year.
Is TownePlace Suites by Marriott a good franchise to buy?
FranchiseVerdict rates TownePlace Suites by Marriott as a B-grade franchise with a risk score of 59 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.