Risk Score
Pending analysis
Investment Range
$93,910,590 - $257,659,490
Franchise Fee
$100,000
Total US Locations
348
Business Summary
MIF, L.L.C. offers franchises to operate full-service hotels under various Marriott brand names, including Marriott Hotel, Marriott Resort, Marriott Suites Hotel, JW Marriott Hotel, Marriott Marquis, or Marriott Hotel & Conference Center. These hotels cater to discriminating business and leisure travelers, offering amenities such as guestrooms, various food and beverage options, meeting and banquet services, business centers, and recreational facilities. JW Marriott Hotels are specifically designated as luxury properties with enhanced amenities and services.
Corporate History
MIF, L.L.C. was established in 2012 as a Delaware limited liability company, functioning as a subsidiary of Marriott International, Inc. The company and its predecessors have a long history in the hospitality industry, having owned and managed Marriott hotels since 1957. MIF, L.L.C. began offering franchises for Marriott hotels in 1968, and later for JW Marriott Hotels starting in 2000.
Financial Overview
Investment Range
$93,910,590 - $257,659,490
Franchise Fee (Low)
$100,000
Franchise Fee (High)
$1,000,000
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$12,840,000
Equipment Costs (High)
$28,980,000
Working Capital
$1,725,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
MIF, L.L.C. exhibits strong financial health, with total assets increasing to $477,080,000 in 2024 from $409,712,000 in 2023, and a robust member's equity of $466,324,000 in 2024. The company has consistently generated significant net income, reporting $63,830,000 in 2024, $64,157,000 in 2023, and $53,570,000 in 2022. While the balance sheets show $0 cash and equivalents, the notes explain this is because transactions are primarily conducted through related party receivable and payable accounts with its parent company, Marriott International, Inc., generating substantial interest income. The independent auditors issued an unqualified opinion on the financial statements and did not raise any going concern qualifications.
Financing Details
Marriott International Capital Corporation (MICC) generally does not offer direct or indirect financing for Marriott hotels or guarantee loans. However, in very limited and discretionary circumstances, MICC may provide credit support, such as a contingent guarantee for a portion of a loan from a third-party lender, or may offer a mezzanine loan. The specific terms and conditions for such rare offerings, including loan amounts, interest rates, repayment terms, and security interests, would vary, and no standard form documents are available. For example, a credit enhancement could guarantee a portion of a loan, with MICC having the option to cure defaults or purchase the loan. In exchange for this, the borrower would need to sign a reimbursement agreement and potentially pledge equity interests, securing repayment to MICC for any advances made. MICC would also require various financial statements, legal opinions, and fulfillment of closing conditions.
Performance Metrics
Total US Locations
348
Franchised Units
235
Corporate Units
113
Avg Square Footage
250,000
Franchising Since
1968
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
17
Litigation Summary
Marriott International, Inc. has been involved in several litigation matters, both as a defendant and a plaintiff, primarily related to data security, resort fees, and contractual disputes. Regarding Data Security Incidents, the company is a defendant in the In re Marriott International Customer Data Security Breach Litigation (MDL No. 19-md-2879), which is a consolidation of numerous class actions and individual lawsuits stemming from a 2018 data breach. This litigation has seen class certification granted in May 2022, an appeal in July 2022 that was subsequently vacated, and a reinstatement of the classes. Oral arguments on the appeal were heard in November 2024, with a ruling pending. Additionally, the 2018 data breach and a separate 2020 incident in Russia led to administrative investigations by regulatory authorities in the U.S., Canada, Australia, the U.K., and Turkey. Marriott reached resolutions with U.S. federal and state authorities in October 2024, including a $52 million payment. The U.K.'s ICO issued an £18.4 million penalty in 2020, which Marriott paid. A Turkish fine from 2019 remains under appeal as of December 2023. A Canadian investigation concluded in July 2023 after Marriott agreed to security program assessments. An Australian investigation resulted in an Enforceable Undertaking in December 2022, requiring assessments until 2027. Separately, 16 Canadian class action lawsuits related to the 2018 data breach were consolidated in Ontario; key rulings in January and November 2022 affirmed that the tort of intrusion upon seclusion does not apply in data security cases, and an appeal was denied in July 2023. Concerning Destination, Resort, and Amenity Fees, Marriott is a defendant in a lawsuit filed by the District of Columbia in July 2019, alleging consumer protection violations. Motions for summary judgment were denied in April and September 2024, and a trial date is set for November 2025. Marriott has settled similar issues with Pennsylvania ($225,000 paid), Texas, Nebraska, and Colorado. In Franchisor-Initiated Litigation, Marriott filed arbitration against Arkansas Knoxville Hotel, LP in August 2023 for $5 million in unpaid fees, which settled confidentially in April 2024. In September 2024, Marriott initiated arbitration against former franchisee Lucky Cleveland Holdings LLC for $1.8 million in unpaid fees, resulting in a summary judgment for $1.95 million in December 2024. Marriott also filed a breach of contract claim against Pride Hotel, LLC in August 2024 for $2.6 million in liquidated damages and fees, which settled shortly after filing. Other Pending Actions include two putative class action lawsuits filed in February and March 2024 (Portillo v. CoSTAR Group, Inc. and Segal v. Amadeus IT Group, S.A.) against Marriott and other hotel companies, alleging antitrust violations related to information sharing. Motions to dismiss are currently pending. Additionally, a civil suit, Hall v. Marriott, filed in January 2022, resulted in a $16 million jury verdict against the franchisee, manager, and Marriott in October 2024, with an appeal filed. Concluded Actions include several cases resolved before March 2022, and Todd Hall v. Marriott, International, Inc., a class action filed in September 2019, which settled and was dismissed in July 2024. In summary, Marriott International has been actively involved in numerous legal disputes over the past few years, ranging from significant data security class actions and regulatory investigations to consumer protection lawsuits regarding resort fees, as well as initiating its own claims against franchisees. Several of these cases remain pending or are under appeal, with actions occurring or being resolved as recently as late 2024 and early 2025.
Bankruptcy History
MIF, L.L.C. has no bankruptcy history to report.
Agreement Terms
Initial Term
20 years
Renewal Conditions
Marriott states that the franchise agreement is not renewable, and franchisees should not expect any right to operate the hotel under the brand after the initial term expires.
Training & Support Program
Franchisor Assistance
Marriott provides comprehensive support to its franchisees both before and after a hotel opens. Before opening, Marriott offers guidance on design and construction, including criteria, plan reviews, and periodic assessments to ensure compliance with brand standards. They assist with procuring furniture, fixtures, equipment, and supplies, conduct final inspections for operational readiness, and provide initial staff training. For hotels with residential components, Marriott and its counsel review declaration and sales materials. After opening, Marriott offers ongoing consultation services for hotel design and operation and maintains access to its reservation system and updated brand standards. The company actively protects its proprietary marks and offers continuous training programs, with costs partially covered by a 'Learning & Development Bundle'. Marriott facilitates a franchisee association for collaborative input. Marketing support is substantial; Marriott administers a Marketing Fund (funded by a 1% contribution from gross room sales) to promote Company Brands and the system broadly. Franchisees are also required to conduct local advertising. Mandatory computer systems, including property management, guest experience, point-of-sale, and reservation systems, along with the Marriott Communications Network, are provided or designated. Ongoing support for these systems, including server management and information security services, is also part of the franchisor's assistance. Additional programs like Franchisee Introduction to Marriott (FITM) and Franchisee OnBoarding for New Development (FOND) are required for new or unqualified operators, including non-accountable audits and participation in specific revenue management, customer engagement, digital marketing, and sales programs for a two-year period.
Initial Training Hours
128
Training Location
Web-based and in-person at designated locations
Ongoing Support
After opening, Marriott provides continuous consultation with representatives at their offices or at the franchisee's hotel. The reservation system remains available, with ongoing costs covered by the Program Services Contribution. Marriott is responsible for protecting its proprietary marks and provides updated access to brand standards. Ongoing training programs are available, with some costs covered by a 'Learning & Development Bundle.' Marriott facilitates a franchisee association for System Hotel franchisees. They also direct Marketing Fund activities and review plans for hotel upgrades and remodeling. Additional marketing programs such as email marketing, internet search engine marketing, sales lead referrals, and loyalty programs are available. Franchisees are required to participate in the Global Sales Organization (GSO) and the server management program. They must also use a managed detection and response service for information security.
Franchise Requirements
Ideal Candidate Profile
Marriott looks for franchisees who demonstrate strong managerial and operational experience, skills, and capabilities, along with a philosophy aligned with operating a hotel according to Marriott's brand standards and franchise agreement. When evaluating a candidate's qualifications, Marriott assesses their ability to run the hotel effectively. While no specific personality traits are outlined, the emphasis is on proven business acumen and the capacity to deliver high-quality service and operational efficiency. If Marriott determines a candidate is not qualified to operate the hotel directly, the franchisee may be required to hire an approved management company. Franchisees must also be financially capable and maintain good standing under Marriott's quality assurance program.
Industry Experience Required
Yes
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
The Marriott franchise agreement does not grant an exclusive territory to the franchisee. The franchisor and its affiliates retain the right to develop, promote, market, own, operate, lease, license, franchise, and/or manage other hotels, lodging products, or other business operations at any location, including those adjacent or proximate to the franchisee's Marriott hotel. A territory may not be granted at all. If a non-exclusive territory is granted, its specific terms, size, and duration will depend on the market in which the site is located. It could be defined as a radius around the hotel or delineated by streets, highways, or other geographical boundaries. Such a non-exclusive territory would typically apply to Marriott hotels only (excluding JW Marriott, Marriott Marquis, or JW Marriott Marquis hotels if the franchise is for a Marriott Hotel, Resort, or Suites, or to JW Marriott hotels only if the franchise is for a JW Marriott hotel), and its duration would be five years or less. It would not apply to existing hotels, hotels under development, chain acquisitions, residential/condominium components, or other lodging products developed by the franchisor or its affiliates.
Staffing Notes
Marriott requires franchisees to employ suitable and qualified individuals to staff the hotel sufficiently. If the franchisee directly operates the hotel, the general manager and other managers must dedicate their full time to the hotel's management and operation, including supervising employees. All employment decisions are made solely by the franchisee or their approved management company, as employees are considered solely their own, not Marriott's. The franchisor may communicate directly with hotel managers and the management company about day-to-day operations. All hotel personnel in management roles must successfully complete mandatory training programs provided by Marriott. Managers, including a general manager and sales directors/managers, must be retained 9 to 12 months prior to the hotel's opening. Marriott also mandates the use of associate alert devices with geolocation capabilities for staff regularly in contact with guests in enclosed spaces, to ensure security.