StudioRes Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$14,409,100 - $18,544,600
Franchise Fee
$40,000
Business Summary
StudioRes operates mid-scale, extended-stay hotels designed for consumers seeking longer stays. Each StudioRes guestroom typically includes a kitchenette, sleeping quarters, and a private bath. The business leverages a comprehensive system that includes the StudioRes trademark, specific design criteria, high standards for cleanliness and service, training programs, marketing initiatives, a reservation system, a property management system, a revenue management system, and a quality assurance program.
Corporate History
MIF, L.L.C., the franchisor for StudioRes, was established in Delaware in 2012 as a subsidiary of Marriott International, Inc. Marriott International, a publicly-traded corporation, has a long-standing history in the hospitality industry, managing and franchising a diverse portfolio of hotel brands across various segments, including luxury, upper-upscale, extended-stay, and mid-scale hotels. MIF, L.L.C. began offering franchises specifically for StudioRes hotels in August 2023. The StudioRes brand itself was developed in 2023, focusing on mid-scale, extended-stay hotels featuring guestrooms with kitchenettes. Marriott International has a history of developing and acquiring numerous other brands and lodging products since 1957, continuously evolving its offerings in the global travel market.
Financial Overview
Investment Range
$14,409,100 - $18,544,600
Franchise Fee (Low)
$40,000
Franchise Fee (High)
$100,000
Royalty %
5%
Marketing %
1.5%
Equipment Costs (Low)
$12,858,800
Equipment Costs (High)
$16,702,800
Working Capital
$496,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
MIF, L.L.C., the franchisor, demonstrates a strong financial position with unqualified audit opinions for its financial statements for the fiscal years ended December 31, 2024, 2023, and 2022. The company has substantial member's equity totaling $466,324,000 as of December 31, 2024, significantly outweighing its total liabilities of $10,756,000. Net income for 2024 was $63,830,000. While the company's cash and cash equivalents are reported as zero, this is explained by the nature of its operations, where transactions are primarily conducted through related party receivable and payable accounts with its parent company, Marriott International, Inc. The auditors did not identify any conditions or events that raise substantial doubt about the company's ability to continue as a going concern.
Financing Details
Marriott International, Inc. generally does not offer direct or indirect financing for StudioRes hotels or guarantee franchisee loans. However, in limited and discretionary circumstances, Marriott may provide credit support in the form of a contingent guaranty for a portion of a loan from a third-party lender, or may offer a mezzanine loan. The specific terms for any such credit support or loans, including amounts, interest rates, repayment obligations, fees, security interests, and personal guaranty requirements, would vary and are determined on a case-by-case basis. Marriott considers factors such as market penetration opportunities, the hotel's size and location, economic conditions, development costs, and the franchisee's commitment to system growth when evaluating these limited financing options. Sample financing agreements are included in Exhibit Q for informational purposes, but the final documents depend on the chosen lender and loan terms. Marriott does not offer any incentives under the single-unit Franchise Agreement or Area Development Agreement.
Performance Metrics
Total US Locations
0
Franchised Units
0
Corporate Units
0
Avg Square Footage
56,000
Franchising Since
2023
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
18
Litigation Summary
StudioRes, through its parent company Marriott International, has been involved in several litigation matters. Many of these are recent or ongoing as of the FDD's issuance date of March 31, 2025. Major areas of litigation include: 1. Data Security Incident: Multiple class action lawsuits and individual actions are ongoing in federal and state courts related to a 2018 data security incident, with a trial date for the City of Chicago case set for November 2025. Various administrative investigations by U.S., Canadian, Australian, and Turkish regulatory authorities have resulted in resolutions and ongoing appeals, including a $52 million settlement with U.S. Attorneys General in October 2024. 2. Destination, Resort, and Amenity Fees: An industry-wide investigation by Attorneys General across all 50 U.S. states and the District of Columbia is ongoing, with a D.C. case filed in 2019 having a trial date in November 2025. 3. Franchisor-Initiated Litigation: Marriott International initiated arbitration and lawsuits in 2023 and 2024 against franchisees for unpaid fees and breach of contract, some of which resulted in confidential settlements or granted summary judgments. 4. Other Pending Actions: As of 2024, there are ongoing putative class action lawsuits alleging unlawful sharing of information and price-fixing against Marriott and other hotel companies, and a civil suit from 2022 alleging negligence, with an appeal pending a 2024 jury verdict. In total, 18 distinct litigation matters or categories are disclosed, a significant number of which were active or filed within the last three years.
Bankruptcy History
MIF, L.L.C. has no bankruptcy history to disclose in this document. Item 4 of the FDD states that no bankruptcy is required to be disclosed.
Agreement Terms
Initial Term
20 years
Renewal Conditions
StudioRes franchise agreements are not renewable. Franchisees should not expect to be granted any right to operate the hotel under the brand after the initial term expires. Marriott may, at its sole discretion, agree to enter into a new franchise agreement on its then-current form, which could have materially different terms and conditions, including franchise fees and duration.
Training & Support Program
Franchisor Assistance
StudioRes provides comprehensive assistance and support to its franchisees both before and after the hotel opens. Pre-opening assistance includes making design and construction criteria available, reviewing construction plans, assessing compliance during construction, offering input for procuring supplies, conducting site visits to ensure readiness, and providing initial training for hotel staff, general managers, and management teams. StudioRes also makes its operational manuals, procedures, and standards available. Post-opening assistance includes ongoing consultation services from representatives, access to electronic systems such as the reservation and property management systems, continuous protection of trademarks, regular updates to operational standards, and various training programs. Marketing and advertising support is managed through a Marketing Fund, to which franchisees contribute 1.5% of gross room sales, used for brand communication, strategy, advertising across various media, and market research. Franchisees are also required to participate in and benefit from Marriott's Bonvoy loyalty program and mandated sales organizations like the Global Sales Organization (GSO), with optional participation in others. StudioRes provides and requires specific computer systems for operations, guest services, networks, and payment processing, along with associated support services, and offers programs like the Franchisee OnBoarding for New Development (FOND) for new or less experienced franchisees.
Initial Training Hours
96
Training Location
A mix of virtual and on-site
Ongoing Support
After opening, StudioRes franchisees receive a variety of ongoing support services. This includes access to representatives for consultation on the hotel's design and operation, continued availability of electronic systems like the reservation system, and protection of the StudioRes trademarks. Franchisees also have access to updated operational standards and are offered various training programs for hotel management personnel. The franchisor actively directs the Marketing Fund activities to promote brand recognition and sales, and supports the Marriott Bonvoy loyalty program. Franchisees participate in Marriott Sales Organizations, with mandatory involvement in the Global Sales Organization (GSO). Ongoing technological support covers maintaining, updating, upgrading, and replacing required computer systems and network infrastructure. Additionally, there are required ongoing training programs for all associates, such as Brand & Service, Ethics + Integrity, and Electronic Systems training. General Managers are required to attend an annual conference. Supplemental support programs, like the Audit Program/GSS Improvement program, may be required for hotels not meeting quality assurance thresholds.
Franchise Requirements
Ideal Candidate Profile
Marriott International evaluates potential StudioRes franchisees based on their ability to operate a hotel in accordance with the brand's standards. This assessment includes reviewing a candidate's managerial and operational experience, skills, capacity, capabilities, and overall business philosophy. If a candidate is determined not to be qualified to operate the hotel themselves, they will be required to hire an approved management company. New-to-Marriott franchisee executives are required to attend an Executive Orientation program, and those deemed unfamiliar with the system may need to complete the Franchisee OnBoarding for New Development (FOND) program, which incurs an additional fee. Financial capability is also a key factor in determining guaranty 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
Staffing Notes
StudioRes requires that a general manager and sales directors/managers be retained at least six to nine months prior to hotel opening to participate in pre-opening training and to prepare the hotel. The general manager and other managers are required to dedicate full-time to the hotel's management and operation. All employment decisions and policies for the hotel are the sole responsibility of the franchisee or their approved management company, not StudioRes. StudioRes provides an opening team to assist and train hotel employees, and mandates various ongoing training programs for all associates, sales and service professionals, and operations associates. The brand also requires the provision of associate alert devices to all staff members who regularly interact with guests in enclosed spaces, to enhance security.