Fairfield Inn by Marriott Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$12,021,800 - $33,832,700
Franchise Fee
$25,000
Total US Locations
1,174
Business Summary
Fairfield by Marriott hotels are select-service hotels that provide high-quality accommodations and related services for various travelers including businesspersons, groups, families, and vacationers. These hotels typically feature 83 to 141 guestrooms, some with suites, along with amenities like a sundry and snack shop called "The Market," a lobby, exercise room, guest laundry, and meeting space. They offer complimentary hot breakfasts and signature guest experiences. Franchisees are granted a non-exclusive license to operate a Fairfield by Marriott, Fairfield Inn & Suites, or Fairfield Inn hotel, utilizing the brand's trademarks, design standards, training programs, marketing, a reservation system, property and revenue management systems, and a quality assurance program.
Corporate History
MIF, L.L.C., the franchisor for Fairfield by Marriott hotels, was established in Delaware in 2012 as a subsidiary of Marriott International, Inc. The Fairfield hotel brand itself has a longer history, with Marriott's affiliates owning and operating Fairfield Inn hotels since 1987 and Fairfield Inn & Suites hotels since 2000. Franchising for the Fairfield Inn brand began in 1998, followed by Fairfield Inn & Suites in 2000. The name for new and converting franchises was updated to "Fairfield by Marriott" in March 2018. As of December 31, 2024, neither MIF, L.L.C. nor its affiliates owned or operated any System hotels under the "Fairfield by Marriott" or "Fairfield Inn by Marriott" names, though they operated six Fairfield Inn & Suites hotels. Marriott International, Inc., the parent company, has expanded into various outdoor-focused lodging products and has entered into licensing agreements with other hospitality brands like Trailborn and Sonder, as well as a strategic license agreement with MGM Resorts International, to integrate these properties into the Marriott Bonvoy ecosystem.
Financial Overview
Investment Range
$12,021,800 - $33,832,700
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$150,000
Royalty %
5.5%
Marketing %
2.5%
Equipment Costs (Low)
$1,242,400
Equipment Costs (High)
$3,042,400
Working Capital
$382,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Fairfield by Marriott (MIF, L.L.C.) generates revenue primarily from franchise fees, licensing fees, and cost reimbursements from its hotel franchisees. The company, a subsidiary of Marriott International, Inc., handles most financial transactions with its parent, resulting in significant amounts owed from related parties. It capitalizes and amortizes costs associated with securing franchise agreements and consistently reports positive net income, with $63.8 million in 2024, $64.1 million in 2023, and $53.5 million in 2022. MIF, L.L.C. operates without a direct cash balance, managing funds through intercompany accounts. The company's financial statements have received an unqualified audit opinion, indicating a sound financial position with no identified material misstatements or concerns about its ability to continue operations.
Financing Details
Fairfield by Marriott (MIF, L.L.C.) generally does not offer direct or indirect financing to franchisees for their hotels, nor does it typically guarantee their loans or other obligations. However, in very limited and discretionary situations, the franchisor may provide credit support, such as a contingent guarantee for a portion of a third-party loan, or may offer a mezzanine loan. Decisions for such support are made on a case-by-case basis, considering factors like market opportunities, hotel specifics, economic conditions, development costs, and the franchisee's commitment to expanding the system. Additionally, Fairfield by Marriott offers a modular construction development incentive program for eligible new-build hotels, providing "key money" incentives ranging from up to $150,000 to $250,000, depending on the type of modular construction utilized. Franchisees must meet specific criteria and timelines to qualify for this incentive, and any unamortized portion must be repaid if the franchise agreement is terminated early.
Performance Metrics
Total US Locations
1,174
Franchised Units
1,168
Corporate Units
6
Avg Square Footage
59,250
Franchising Since
1998
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
21
Litigation Summary
Fairfield by Marriott (MIF, L.L.C. and its parent, Marriott International, Inc.) has been involved in several significant and ongoing legal actions, with 21 cases disclosed. A substantial portion of the litigation stems from a major data security incident in 2018, which led to numerous class-action lawsuits and administrative investigations across various jurisdictions including the U.S., U.K., Turkey, Canada, and Australia. Marriott has reached settlements with U.S. Attorneys General and the Federal Trade Commission, paying a total of $52 million, and also paid a £18.4 million penalty to the U.K. Information Commissioner's Office. Appeals and ongoing assessments are still active in the Turkish and Australian cases, respectively. Other current litigation involves class-action lawsuits filed in 2024 against Marriott and other hotel companies, alleging unlawful information sharing and price-fixing related to hospitality data. Fairfield by Marriott has also initiated its own arbitration and breach of contract claims against some franchisees for non-payment of fees and agreement violations, with several of these cases recently settled in 2024. Additionally, a civil suit filed in North Carolina in 2022 resulted in a $16 million jury verdict against a franchisee, manager, and Marriott, which is currently under appeal. Overall, Fairfield by Marriott and its parent company face a complex and active legal landscape, with many cases ongoing in various stages of litigation and appeal.
Bankruptcy History
Fairfield by Marriott (MIF, L.L.C.) has no bankruptcy history to report. The disclosure document explicitly states that no bankruptcy is required to be disclosed for the franchisor, its affiliates, or key personnel.
Agreement Terms
Initial Term
20 years
Renewal Conditions
The Fairfield by Marriott franchise agreement is not renewable, and franchisees should not have any expectation of being granted a right to operate the hotel under the brand after the initial term expires.
Training & Support Program
Franchisor Assistance
Fairfield by Marriott provides extensive support to its franchisees both before and after a hotel opens. Pre-opening assistance includes making design and construction criteria available, reviewing plans for compliance with standards, assessing site compliance during construction, and offering guidance for procuring supplies and equipment. The franchisor also provides pre-opening training for general managers and management teams, along with operational tools and standards through electronic systems, including on-site training for hotel staff. Post-opening, Fairfield by Marriott offers ongoing consultation on design and operations, maintains a reservation system, and protects its proprietary marks. The franchisor manages the Marketing Fund for advertising, sales, and promotional programs and offers various mandatory and optional sales and marketing programs, including centralized sales organizations. Continuous computer system support is provided for various electronic systems like the Property Management System and the Marriott Communications Network. Mandatory ongoing training is delivered through a 'learning and development bundle' covering various programs for all associates, with an annual cost. Fairfield by Marriott also offers optional leadership training and may require remedial training if a hotel's performance falls below quality assurance thresholds.
Initial Training Hours
97
Training Location
Web-based
Ongoing Support
After a hotel opens, Fairfield by Marriott provides ongoing support through various channels. This includes access to representatives for consultation on hotel design and operation, continued use of electronic systems like the reservation system, and protection of the proprietary marks. The franchisor manages the Marketing Fund for advertising, sales, and promotional activities. Franchisees also have access to mandatory and optional sales and marketing programs, including various Marriott Sales Organizations. Ongoing computer system support is provided for mandatory Electronic Systems, such as the Property Management System and the Marriott Communications Network. Additionally, Fairfield by Marriott implements a 'learning and development bundle' that covers the cost of certain required ongoing training programs for all associates, with an annual charge. Optional leadership training programs are also available, and remedial training may be mandated for hotels that do not meet quality assurance standards.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Absentee Allowed
Territory Type
Non-Exclusive
Territory Size Requirements
Fairfield by Marriott franchisees may not be granted a territory. If a territory is granted, it will be non-exclusive and limited to Fairfield by Marriott hotels. The specific terms, geographic size, and duration of such a territory will depend on the market location and will not grant rights for additional development or enlargement of the hotel within that area. A granted territory may be defined as a radius around the hotel or delineated by streets, highways, or other geographical boundaries. The continuation of these territorial rights may be contingent on the timely commencement of construction and opening of the hotel. These territories are explicitly stated not to apply to other existing or acquired hotels, other Marriott brands, or residential/condominium components.