General

Industry

Travel and Hospitality

Category

Lodging

SBA Identifier

S2350

Year of Founding

1997

Fees

Marketing Fee

1%

Royalty Fee

VARIES

Franchise Fee

$120,000-$120,000

Investment Range

$82.97M-$206.62M

Location units

Total U.S. Locations

369

U.S. Franchised Units

243

U.S. Corporate Units

126

Headquarters (City)

Bethesda

Other

Item 19 - Franchise Financials

Yes

Financing Availability

-

Started Offering Franchises

2015

Issuance of FDD Data

03/31/2022

What to know about Marriott franchise?

The franchisee will establish and operate a full-service hotel under the name "Delta Hotels by Marriott."

Marriott is based in Bethesda, MD. Scroll down to learn more!

How much does a Marriott franchise cost?

Are you wondering how much is a Marriott franchise? Before starting a Marriott franchise, it is important to know the franchise fee, working capital and other costs required to start the business.

The minimum investment amount required to open a Marriott franchise is $82,965,890 and can go all the way up to $206,616,490. Keep in mind, you should also allocate additional funds to live off of while the Marriott business ramps up. This can take as little as 6 months to over 2 years depending on the franchise opportunity. You should speak to at least 5 Marriott franchisees to understand the true cost of opening the franchise and how long it takes to: 1) start a Marriott business 2) pass break even 3) hit significant income.

After (and if) you pass the point of earning significant income from your Marriott franchise, there may be enough margin to hire a day-to-day manager and work less hours in the business.

Franchise Net Unit Growth

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Download our guide to compare Marriott. Hotels to the Lodging, Outdoor Travel and Hospitality industry.

Franchise Data

Year Start of Year Units Opened Units Closed End of Year
2016 10 2 0 12
2017 12 12 0 24
2018 223 7 4 225
2019 225 8 3 230
2020 230 7 1 236
2021 236 9 2 243

Additional Details

How much does a Marriott franchise owner make?

Marriott franchise earnings and revenue can vary significantly from one franchisee to another.
The Marriott franchise owner profits can be influenced by labor costs, lease rates, hours worked as well as other factors.

Marriott discloses financials at the unit level. In other words, they show how much Marriott franchisees made in the past. Through analyzing this information available in the metrics tab, it can serve as a good basis to further explore the opportunity or not.

At Vetted Biz, we advise you to speak with 5 to 10 franchisees to understand how much money they are making from the Marriott franchise. Roughly 60% of franchises disclose financials and it makes the process easier when filtering potential franchise opportunities like Marriott. Don’t just speak to existing franchisees, call franchisees who have recently left the system and try to find out how much those Marriott owners were making.

Visit the Marriott metrics tab to explore the financials for this business.

What is the Marriott franchise fee?

Owning a Marriott franchise requires a variable royalty fee and 1% marketing fee. These two expenses represent the main ongoing costs you can expect to pay the franchisor throughout the franchise relationship. There may be other ongoing fees disclosed in the Marriott Franchise Disclosure Document

Keep in mind, there is also an initial Marriott franchise fee of $120,000 that is included in the initial investment amount of $82,965,890 to $206,616,490. Depending on the franchise agreement you sign, you might have to pay the full franchise fee again if you decide to extend the Marriott franchise relationship. Consult with a licensed franchise attorney to understand exactly what you receive for paying the Marriott franchise fee of $120,000.

Visit the Marriott metrics tab to explore the financials for this business, royalty and marketing fees compare to other Travel and Hospitality franchises. You can also compare these fees for 2,000+ franchises currently offered in the U.S.

When was Marriott founded?

Marriott started offering franchises in 2015. Marriott was founded 25 years ago in 1997.

At Vetted Biz, we recommend franchises have 3-5 corporate locations and 5+ years of experience before offering a franchise. There needs to be proof that the business model works and is replicable before offering the franchise to other!

How many Marriott locations are in the U.S.?

As of 2022, there were 243 locations across the U.S. There are also 126 corporate locations. Most Travel and Hospitality franchises like Marriott have more franchised locations than corporate locations.

How many Marriott franchises opened over the past few years?

Over the prior 3 years we have data for, Marriott has opened 24 outlets throughout the U.S. Visit the Marriott metrics tab to explore how the openings compare to other Travel and Hospitality franchises.

How many Marriott franchises closed over the past few years?

Over the prior 3 years we have data for, Marriott has closed 6 outlets throughout the U.S

Visit the Marriott metrics tab to explore how the openings compare to other Travel and Hospitality franchises.

Is Marriott growing? Are they opening more locations than they are closing?

The net unit growth rate for Marriott over the past 3 years is 8%. Over the last year we have data for, Marriott had a net unit growth rate of 3%.

Without a comparison, this number doesn’t mean much. Compare how the Marriott growth rate compares to 2,000+ other franchises and Industry franchises like Marriott. More info in the Marriott metrics tab.

Is Marriott franchise eligible for an SBA Loan?

Marriott is eligible for SBA loans including the 7(a) loan. To find out more about the SBA loan program for franchising click here.

Marriott franchise was assigned the SBA Franchise ID of S2350 on 01/01/2018. This DOES NOT mean the SBA endorses this franchise. The SBA Franchise Directory will only include business models like Marriott that are reviewed and found eligible under SBA’s affiliation rules and other eligibility criteria. Currently, there are over 7,000 franchise opportunities that the SBA has deemed eligible for SBA financing.

Is Marriott a franchise in the United States?

According to the SBA, Marriott meets the Federal Trade Commission (FTC) definition of a franchise. The FTC Franchise Rule requires franchisors to provide all potential franchisees with a disclosure document (FDD) containing 23 items about the franchise, its officers, and other franchisees. Be sure that Marriott provides you with an FDD if you are in discussion to buy a Marriott.

What is the Marriott Franchise for Sale Rate?

The Marriott systemwide health and franchisee satisfaction can be measured by the Marriottfranchise for sale rate. The franchise for sale rate is calculated by the percentage of units transferred to new franchisees and reacquired by franchisor.

Marriott franchise for sale rate over the past 3 years is 11%. Over the last year we have data for, Marriott had a franchise for sale rate of 6%.

Without a comparison, this number doesn’t mean much. Compare how the Marriott franchise for sale rate compares to 2,000+ other franchises and Industry franchises like Marriott. More info in the Marriott metrics tab.

What is the Marriott Franchise Failure Rate?

Marriott franchise failures comprise franchise terminations, franchise non-renewals, and franchises that ceased operations for other reasons. The failure rate is one of the most important franchise metrics to consider when investing in a franchise!

Marriott failure rate over the past 3 years is 2%. Over the last year we have data for, Marriott had a franchise failure rate of 1%.

Without a comparison, this number doesn’t mean much. Compare how the Marriott franchise for sale rate compares to 2,000+ other franchises and Industry franchises like Marriott. More info in the Marriott metrics tab.

How can I find out more details on Marriott franchise?

Visit the Marriott metrics tab to explore franchise profitability, industry comparables and more. Become a Vetted Member today today for exclusive access on this franchise opportunity!

Investment Midpoint

The average of the low and high range of the investment amounts calculated from the most recently available Franchise Disclosure Document

Marriott

$144,791,190

Industry median

All franchises median

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Royalty Fee

The median royalty fee from the Franchise Disclosure Document

Marriott

VARIES

Industry median

All franchises median

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Franchise Fee Midpoint

Payment that the franchisee must pay to the franchise owner in order to start a franchise.

Marriott

$120,000

Industry median

All franchises median

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Item 19 – Financial Performance Representations

Historical financial performance representations

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Franchise Financials

Franchisor company financial information and financial performance representations, if disclosed by the franchisor.

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General

Industry

Travel and Hospitality

Category

Lodging

SBA Identifier

S2350

Year of Founding

1997

Fees

Marketing Fee

1%

Royalty Fee

VARIES

Franchise Fee

$120,000-$120,000

Investment Range

$82.97M-$206.62M

Location units

Total U.S. Locations

369

U.S. Franchised Units

243

U.S. Corporate Units

126

Headquarters (City)

Bethesda

Other

Item 19 - Franchise Financials

Yes

Financing Availability

-

Started Offering Franchises

2015

Issuance of FDD Data

03/31/2022

Detailed Franchise metrics for Marriott

Detailed Franchise Metrics are metrics calculated and reviewed by Vetted Biz. You can find the available metrics for Marriott below. “N/A" or Not Applicable results mean that there is not enough data available to compute a precise rate or that the result is not mathematically computable. When results are not mathematically computable, you should pay attention to the absolute values (#) instead of the percentage rate itself.

Growth Rate

The percentage change of total franchise units from one year to the next by franchisor.

 

1 year

3 years

Marriott

3%

8%

Industry median

All franchises median

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Franchise for Sale Rate

The percentage of units transferred to new franchisees and reacquired by franchisor.

 

1 year

3 years

Marriott

2%

11%

Industry median

All franchises median

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Net Unit Growth (most recent year)

Net Unit Growth (3 years)

Failure Rate

Franchise failures comprise franchise terminations, franchise non-renewals, and franchises that ceased operations for other reasons.

 

1 year

3 years

Marriott

4%

2%

Industry median

All franchises median

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Business details

Company Name

http://www.marriott.com/

Business email

**********@******.com

Mailing address

10400 Fernwood Road

State headquarters

Maryland

Owner Name

Marriott

Phone

+1 (000) 0********00

City

Bethesda

Zip code

20817
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