TownePlace Suites by Marriott
Bottom line
- Total investment $13.1M – $38.5M 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 STRONG with a risk score of 53/100. SBA loan default rate of 0.0% across 18 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 TownePlace Suites by Marriott unit return on the cash you put in?
Unlevered ROIC · per unit
0%
Below typical band (30–60%)
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.
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 · 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 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
Extended-stay hotel franchise with substantial capital requirements, undisclosed profitability metrics, significant multi-jurisdictional litigation, and competitive territory vulnerabilities creates elevated investment risk.
Score breakdown · what drove the 53 / 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
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
TownePlace Suites by Marriott · FDD (2026) PDF