FDD Analysis 2025 FDD

Residence Inn by Marriott, Resident Inn by Marriott hotels Franchise Disclosure Document (FDD): Key Facts & Financials

The Franchise Disclosure Document (FDD) is a legal document that franchisors must provide to prospective franchisees at least 14 days before any agreement is signed or money changes hands.

This page summarizes the key facts and financials from Residence Inn by Marriott, Resident Inn by Marriott hotels's FDD, including franchise costs (Item 7), ongoing fees (Item 6), financial performance data (Item 19), and unit growth trends (Item 20).

What the Residence Inn by Marriott, Resident Inn by Marriott hotels FDD Covers

Required disclosure items from the franchisor

Franchisor Background

Items 1-4: Company history, litigation, bankruptcy

Fees & Costs

Items 5-7: Initial fees, ongoing fees, total investment

Obligations & Restrictions

Items 8-16: Purchasing, territory, trademarks

Financial Performance

Item 19: Revenue data provided

Franchise Costs (Item 7 Summary)

Initial investment required to open a franchise

Total Initial Investment$15,929,510 - $46,813,310
Franchise Fee$90,000

Investment Breakdown

Initial Franchise Application Fee¹$90,000 - $90,000
Pre-Opening Training, Revenue Management, Marketing & Digital Support, and Related Services²$34,000 - $60,000
Property Management, Reservation, Yield Management, Opportunity Management, and Other Systems³$92,300 - $113,700
Market Feasibility Study⁴$6,000 - $18,000
Real Estate⁵—

+ 5 more categories

Ongoing Fees (Item 6 Summary)

Recurring fees paid to the franchisor

Royalty Fee6% of gross sales
Marketing/Advertising Fee—

Other Ongoing Fees

Program Services Contribution2.56%
Loyalty ProgramVaries
Revenue Management Advisory ServicesVaries
Cluster Revenue ManagementVaries
Area Sales and Multi-Hotel SalesVaries

Item 19 Financial Performance

Revenue and financial data (if disclosed)

Median Revenue$168/year
Disclosure Year2025
Reporting Units—
Revenue VarianceLow variance (consistent performance)

Unit Growth & Franchisee Behavior (Item 20)

Franchise system size and trends

873

Total Units

+12

Net Growth (YoY)

+1.4%

Growth Rate

Franchised Units799
Company-Owned Units74

What the FDD Doesn't Make Obvious

Key considerations beyond the disclosure

Legal History

This FDD discloses litigation history. Review Item 3 carefully to understand the nature and outcome of any legal proceedings.

Real Estate & Location

FDDs often understate the challenge of finding suitable real estate. Site selection, lease negotiation, and buildout timelines can significantly impact your total investment and time to open.

Working Capital Needs

Initial investment ranges often assume a best-case scenario. Many franchisees need additional working capital during the ramp-up period, especially in the first 6-12 months of operation.

Related Resources

Residence Inn by Marriott, Resident Inn by Marriott hotels Overview

Full franchise profile and details

Is Residence Inn by Marriott, Resident Inn by Marriott hotels Worth It?

Investment analysis and evaluation

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