Four Points by Sheraton Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$12,656,210 - $36,903,710
Franchise Fee
$75,000
Total US Locations
128
Business Summary
Four Points by Sheraton hotels offer high-quality accommodations and related services to travelers. These hotels feature timeless design, accessible technology, comfort, and convenience, targeting family, leisure, and business travelers. Typically ranging from 90 to 250 guestrooms, Four Points by Sheraton hotels are usually located in urban or suburban areas and include public spaces such as a front desk, pantry, meeting areas, upgraded exercise facilities, and often a restaurant and bar. Franchisees are granted a non-exclusive license to establish, develop, and operate a Four Points by Sheraton hotel at a specific location, utilizing the brand's system, trademarks, design criteria, and operational standards.
Corporate History
MIF, L.L.C., the franchisor for Four Points by Sheraton, was established in Delaware in 2012 as a subsidiary of Marriott International, Inc. While Marriott's subsidiaries had offered franchises for Four Points hotels and owned/managed them since 1995, MIF, L.L.C. itself began offering franchises for the brand in March 2017.
Financial Overview
Investment Range
$12,656,210 - $36,903,710
Franchise Fee (Low)
$75,000
Franchise Fee (High)
$150,000
Royalty %
5.5%
Marketing %
1%
Equipment Costs (Low)
$1,383,700
Equipment Costs (High)
$3,228,500
Working Capital
$395,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
MIF, L.L.C., the franchisor for Four Points by Sheraton, operates without a direct cash balance, relying heavily on its parent company, Marriott International, Inc., for liquidity through related-party transactions, which are substantial (e.g., $443,571,000 due from related parties in 2024). The company generates significant net income, reporting $63,830,000 in 2024. However, its allowance for credit losses significantly increased from $345,000 in 2023 to $1,466,000 in 2024. Despite numerous ongoing litigations disclosed in Item 3, the financial statements do not include accruals for legal contingencies as of December 31, 2024 and 2023. An independent auditor has issued an unqualified opinion, indicating the financial statements are presented fairly.
Financing Details
Four Points by Sheraton generally does not offer direct or indirect financing, nor does it guarantee franchisee loans. However, in limited, discretionary circumstances, Marriott may provide credit support through a contingent guaranty for a portion of a third-party loan or offer a mezzanine loan. For new development projects approved between March 2025 and March 2026, the franchisor offers a development incentive program with reduced franchise fees for the first four years (3.0% for years 1-2, 4.0% for years 3-4, then 5.5%). These projects may also receive an incentive payment (Key Money) of up to $2,000 per guestroom, with a maximum of $250,000, payable after the hotel opens. Similarly, modular construction projects can receive Key Money incentives of up to $150,000 to $250,000, depending on the type of modular construction used. Any Key Money received may be repayable if the franchise agreement terminates early.
Performance Metrics
Total US Locations
128
Franchised Units
127
Corporate Units
1
Avg Square Footage
62,750
Franchising Since
1995
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
17
Litigation Summary
Marriott, as the franchisor for Four Points by Sheraton, has been involved in several significant legal matters. A major ongoing issue stems from a 2018 data security incident, which led to numerous class-action lawsuits consolidated into an MDL. Appeals regarding class certification were heard in November 2024 and are currently pending. The City of Chicago also has a related lawsuit against Marriott from 2019, with a trial set for November 2025. The data security incident also prompted administrative investigations globally. Marriott settled with the Federal Trade Commission and attorneys general from 49 states and D.C. in October 2024 for $52 million. A Turkish administrative fine from 2019 is under appeal, and Canadian class-action lawsuits were consolidated into a single case, with a key legal ruling affirmed by the Supreme Court of Canada in July 2023. Additionally, Marriott is facing ongoing industry-wide investigations and a lawsuit from the District of Columbia regarding 'Resort Fees,' with a trial scheduled for November 2025. Recently, Marriott initiated several lawsuits (2023-2024) against franchisees for unpaid fees and breaches of agreement, successfully resolving some. Other pending actions include two putative class-action antitrust lawsuits filed in 2024, challenging information sharing and alleged price-fixing in the luxury hotel market. A 2022 civil suit, Hall v. Marriott, resulted in a $16 million jury verdict against Marriott in October 2024, which is currently under appeal. Concluded actions since 2020 include various data security and resort fee-related lawsuits that were settled or dismissed.
Bankruptcy History
Four Points by Sheraton has no bankruptcy history to report.
Agreement Terms
Initial Term
20 years
Renewal Conditions
Four Points by Sheraton franchise agreements are not renewable, meaning franchisees should not expect to have the right to operate under the brand after the initial term expires. However, the franchisor may, at its sole discretion, offer a new franchise agreement after the initial term ends. This new agreement may have different terms and conditions, including varying franchise fees and duration, compared to the original agreement.
Training & Support Program
Franchisor Assistance
Marriott, the franchisor for Four Points by Sheraton, provides extensive assistance to its franchisees. Before a hotel opens, Marriott offers design and construction criteria, reviews plans, assesses compliance during construction, provides procurement input, inspects the hotel for readiness, and conducts on-site or virtual training for staff and management. It also makes operational standards available through electronic systems. After opening, ongoing support includes: consultation from Marriott representatives, access to electronic systems (like the reservation system and yield management system), trademark protection, and management of the Marketing Fund for advertising, sales, and promotional programs. Franchisees contribute to this fund, and Marriott directs its activities. Marriott also offers mandatory and optional sales and marketing programs, and provides support through various Marriott Sales Organizations. Technology support covers mandatory systems such as Property Management System (PMS), Opportunity Management Systems, Guest Experience Platform (GxP), Point-of-Sale (POS), Marriott Communications Network (MCN), Franchisee-Managed Network (FMN), Wi-Fi, Hotel Lock Systems with mobile key, Guestroom Entertainment Platform, Lobby PCs, Associate Alert Devices, Intranet Website (MGS), MDash, Information Security Managed Detection and Response Services, and Marriott Environmental Sustainability Hub (MESH). All systems require regular updates, upgrades, and replacements, and Marriott also mandates specific payment processing and tokenization standards. Training includes mandatory programs covering brand, service, operations, ethics, administrative tasks, and electronic systems. There are also required third-party certifications (e.g., alcohol awareness, food safety). New-to-Marriott franchisee executives must complete Executive Orientation or specialized Franchisee Introduction to Marriott (FITM) or Franchisee OnBoarding for New Development (FOND) programs. General managers are required to attend conferences and leader summits. Additional residential training is provided for hotels with residential components.
Initial Training Hours
112
Training Location
Varies, including on-site and franchisor-designated locations
Ongoing Support
After opening, Four Points by Sheraton franchisees receive a wide range of ongoing support. Marriott provides access to representatives for consultation on hotel design and operations. Franchisees must utilize and maintain Marriott's electronic systems, including the reservation system and operational standards. Marriott protects its trademarks and manages the Marketing Fund, which franchisees contribute to for advertising, sales, and promotional programs. The franchisor directs the activities of this fund. Franchisees are also required to participate in certain sales and marketing programs, and have access to various Marriott Sales Organizations for sales and support services, with participation in the Global Sales Organization being mandatory. Ongoing operational oversight includes a mandatory Audit Program to ensure compliance with brand standards, with potential 'Red Zone' charges and supplemental training for performance failures. 'Brand Advocate' visits may occur if a hotel does not meet guest satisfaction thresholds, and food safety and life safety re-assessments are conducted. Marriott provides a 'Learning & Development Bundle' to cover ongoing training programs. General managers are required to attend conferences (every other year) and Leader Summits (in alternating years) for continuous education. Additionally, ongoing costs for various technology systems, such as email, continent field support, information security services, Point-of-Sale (POS) system, server management, opportunity management systems, mobile device and application management, and lock system software, are covered through various fees.
Franchise Requirements
Ideal Candidate Profile
Marriott, the franchisor for Four Points by Sheraton, seeks franchisees with strong managerial and operational experience, skills, capacity, capabilities, and a business philosophy that aligns with the brand's standards. While specific industry, sales, or technical experience is not explicitly stated as a hard requirement for the franchisee themselves, a demonstrated ability to operate a hotel in accordance with Marriott's standards is crucial. If a franchisee is deemed unqualified to operate the hotel directly, Marriott may require them to hire an approved third-party management company or participate in specific franchise management training programs.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
absentee-allowed
Territory Type
non-exclusive
Territory Size Requirements
Four Points by Sheraton franchisees do not receive an exclusive territory. While a territory may be granted, it applies only to Four Points hotels and for a duration less than the entire term of the franchise agreement. It does not apply to any existing or under-development hotels as of the agreement date, or to hotels acquired by or merged with Marriott. If a territory is granted, it may be defined as a radius around the hotel or by specific geographical boundaries like streets or highways. For new development/conversion projects, a restricted territory for a period of years (not extending beyond a specific date) may be granted, defined either by a specified-mile radius from the front door of the hotel or by a description of area boundaries.
Staffing Notes
Four Points by Sheraton requires hotels to employ suitably qualified individuals sufficient to staff the hotel. The general manager and other managers must devote full time to the management and operation of the hotel. All employment decisions for the hotel are made solely by the franchisee or its management company, not by Marriott. Marriott may communicate directly with hotel managers and the management company about day-to-day operations but does not direct or control employment policies or decisions. Franchises are required to provide certain training for personnel working at the hotel as outlined in the standards. If a hotel fails to meet performance thresholds, Marriott may require participation in supplemental training programs for staff.