FranchiseVerdict
TownePlace Suites by Marriott logo
B60/100FDD 2026

TownePlace Suites by Marriott — Litigation & Risk

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

Back to overview

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
60 / 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
9
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$39.2M
Avg loan size
$4.4M
Participating lenders
7

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
Non-compete
2 yrs
Post-termination restriction on similar businesses
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 60/100 rating

Risk Score Breakdown

  1. 01MEDMassive capital requirement ($13M–$38M) with no disclosed average revenue or net income data to validate ROI projections
  2. 02HIGHExtensive litigation across multiple jurisdictions including data breaches, antitrust allegations, and consumer protection lawsuits that could impact brand reputation and operational costs
  3. 03MINORNo protected territory creates direct competition risk; franchisees could face cannibalization from adjacent company-owned or franchised properties
  4. 04MINOR5.5% royalty on gross room sales provides no relief during downturns and lacks transparency on actual profitability benchmarks
  5. 05HIGH9.2% YoY growth is modest for hospitality sector and does not offset litigation and reputational headwinds
  6. 06MINORAbsence of Item 19 (financial performance representations) prevents due diligence and suggests either poor unit economics or franchisor reluctance to disclose

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.