About Courtyard by Marriott Franchise
Courtyard by Marriott is one of the most recognized hotel brands in the world, offering franchise opportunities since 1990 under the Marriott International portfolio.
Each property is designed for the modern business traveler, featuring well appointed guest rooms, flexible meeting spaces, the Bistro restaurant and bar, and amenities such as fitness centers and outdoor courtyards.
The franchise fee is $90,000 plus $500 per guestroom in excess of 150 guestrooms.
Courtyard by Marriott Franchise Cost & Fees
Minimum Investment
$14.1M
Average Investment
$26.2M
Maximum Investment
$38.3M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $90,000 plus $500 per guestroom in excess of 150 guestrooms | One-time payment upon signing |
| Royalty Fee | 6.0% of gross room sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of gross room sales (part of Program Services Contribution) | National brand fund |
| Total Investment Range | $14,087,810 – $38,276,610 | Includes build-out, inventory, working capital |
The investment range of $14.1M–$38.3M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6.0% of gross room sales) and marketing fee (2% of gross room sales (part of Program Services Contribution)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Application Fee | $90,000 | $90,000 |
| Pre-Opening Training, Revenue Management, Marketing & Digital Support, and Related Services | $39,000 | $70,000 |
| Property Management, Reservation, Yield Management, Opportunity Management, and Other Systems | $92,300 | $113,700 |
| Market Feasibility Study | $6,000 | $18,000 |
| Real Estate | $0 | $0 |
| Building Permit, Tap, and Impact Fees | $0 | $0 |
| Building Construction | $10,968,000 | $31,200,000 |
| Kitchen and Laundry Equipment | $344,000 | $836,000 |
| Furniture and Fixtures | $1,208,000 | $2,835,000 |
| Technology Hardware & Software and Network Infrastructure | $105,400 | $252,500 |
| Operating Supplies | $273,800 | $415,700 |
| Professional Design Services | $512,100 | $1,431,500 |
| Insurance | $0 | $0 |
| Start-up Costs | $184,000 | $525,000 |
| Hard Cost Contingency (5% of hard costs) | $0 | $0 |
| Food Safety and Sanitation Compliance | $210 | $210 |
| Opening Advertising | $25,000 | $50,000 |
| Additional Funds (first 3 months) | $240,000 | $550,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | The greater of $175,000 or $500 per guestroom |
| Technology Fee | Varies, includes fees for POS system ($121/month + $17-30/workstation), Information Security ($39/device/year), PC Security & Management ($11.64-71.50/device/month), Opportunity Management Systems (variable), EMPOWER GxP Add-On License ($550/agent/year), Mobile Device Management ($9-10/device/month), Lock System Software ($8-11/guestroom/year), and other optional digital services. |
| Audit Fee | $1,350 to $2,350 (for re-audits, replacement audits, and non-accountable audits) |
| Program Services Contribution (excluding Marketing Fund) | 1.35% of gross room sales + $10,000 per year + $220 per guestroom per year |
| Marriott Bonvoy | 2.3% of qualifying revenue generated by customers earning loyalty points or miles; plus 1% of qualifying event revenue for select group events and catering events (up to $300 per event) |
| Revenue Management Advisory Services / Cluster Revenue Management | $1,200 to $1,300 per month (most hotels) or $3,000 per month (for hotels with group business accounting for 25%+ of room nights), plus a one-time set-up fee of $2,500 to $5,000 |
| Account Sales - Group Lead | 6% of gross group room revenue (reduced to 3% if intermediary), not to exceed $12,000 per booking (or $30,000 per booking if convention/resort hotel) |
| MI LEADs | 6% of gross group room revenue and gross catering revenue, not to exceed $30,000 per booking |
| Business Transient (BT) Booking | $123.00 to $291.40 per month |
| Customer Engagement Center (CEC) Property Support Services (PSS) | $8.20 to $8.61 per guestroom reserved, plus $34.85 to $41.00 per hour for other PSS |
| National Group Sales and Marriott.com Lead Team Sales - Group Lead | $2.60 per room night booked |
| National Group Sales and Marriott.com Lead Team Sales - Catering Lead | $135.00 per catering opportunity booked |
| National Group Sales and Marriott.com Lead Team Sales - Extended-Stay Lead | $2.60 per room night booked |
| Group Demand Generation | $1.00 per group room night booked |
| General Sales Agents - Group Lead | $2.50 per room night booked |
| Cooperative Advertising and Marketing Initiatives | Varies |
| Gift Cards | Varies (up to 10% of amount tendered for redemption) |
| Intermediary Payments and Centralized Travel Agent Commission (CTAC) | Varies (e.g., 10% of qualifying room revenue for Preferred Travel Agency program) |
| QuickGroup Online Booking | 2% of gross group room revenue and function space revenue booked |
| Marriott Digital Services | Varies depending on the product or service selected |
| Enhanced On-Platform Website Maintenance | $75 per month |
| Transaction-Based Media | 8% of applicable gross room revenues, not to exceed $200 per stay |
| $5.12 to $11.03 per month per email address (after 3 covered by Program Services Contribution) | |
| Continent Field Support | $7.34 to $9.50 per device per month (after 5 covered by Program Services Contribution) |
| Unauthorized Electronic Identifier | $100 per day |
| Credit Card Processing | 0.065% of the dollar amount of credit card transactions |
| Red Zone Charge | $25 to $100 per guestroom (up to $50,000 each six-month period) plus $2,500 for each in-person or virtual meeting (or $2,750 prior to July 2024) |
| Audit Program/GSS Improvement Program | $20,000 (up to 10 participants) plus $10,000 (for up to an additional 10 participants) |
| Data Manipulation Charge | Up to $5,000 per quarter |
| Food Safety Re-Assessment | $1,350 to $1,500 per re-assessment |
| Fire Protection and Life Safety Re-Assessment | $280 to $700 per re-assessment |
| Fire Protection and Life Safety Audit | $3,000 per audit |
| Property Improvement Plan (PIP) | $12,000 |
| PIP Revision or Modification | $5,000 per revision or modification |
| Expired PIP Refresh | $6,000 (12 months past) or $12,000 (24 months past) |
| Custom Design & Construction Review Services | $20,000 |
| Interior Design Firm Screening and Coordination | $2,500 per screen of interior design firm, plus $15,000 if non-recommended interior design firm retained |
| PIP and Renovation Non-Compliance | $10,000 per re-evaluation |
| Advisory Services | Varies |
| Comfort Letter or Estoppel Processing Fee | $2,500 |
| Prospectus Review | Varies (outside counsel costs) |
| Additional Design/Construction Review Services | Varies |
| Fire Protection and Life Safety Plan Review, Inspection and Testing, and Compliance Audits | $500 to $19,500 |
| Post-Opening Authorization to Open (ATO) Work Inspection | $910 per day per inspector |
| Expansion | $500 per guestroom |
| Expansion Opening Authorization | $3,500 |
| Post-Approval Owner Background Check | $300 per entity/$100 per person (or $400-$5,600 for enhanced due diligence) |
| Operator Screen | $7,500 |
| Management Company Transition Services | $5,500 |
| Temporary Closure and Re-Opening Support Services | $0 to $25,000 (or $983/day for opening/sales manager support, $725/day/trainer) |
| Destination and Resort Fees Application/Annual Fee | $1,500 application fee plus $550 per year if approved |
| Learning & Development Bundle | $11.40 to $12.60 per guestroom per year |
| Conferences | Varies ($300 to $2,300 per hotel per year) |
| Liquidated Damages | Varies, based on a formula |
| Indemnification | Varies |
| Removal of Hotel from System | $12,000 |
| Construction/Conversion Extension | $10,000 |
| Other Company Brand Conversion Authorization | Varies (pre-opening fees from Item 5) |
| Food & Beverage Support | $1,200 per year |
| Best Rate Guarantee Non-Compliance | $50 to $500 per violation |
| Customer Issue Resolution | $55 per customer complaint or other customer service issue handled by us, and reimbursement of all costs incurred by us |
| Accounting Audit | Amount of underpayment plus interest if an audit reveals an underpayment of 5% or more, plus audit costs |
| Interest on Overdue Amounts | Lesser of 18% per year or maximum interest rate permitted by law |
| Costs and Attorneys’ Fees | Varies |
| mCredit Customer Credit Reference Reports | $12 per report |
| American Hotel and Lodging Association (AH&LA) | $4.50 per guestroom per year |
| Franchisee Associate Job Postings | $135 per Marriott.com job posting, or $145 per CareerBuilder.com job posting |
| GM Conference and Awards | $300 to $2,300 per hotel per year |
| Residential Marketing License Fee | 4% of total gross sales price (residential/condominium) or 3% to 4% of gross monthly rentals (multi-family) |
| Trademark License Fee (Residential/Condominium) | $1,000 per unit per year |
| EMPOWER Guest Experiences (GxP) – Support | $980 per year |
| Residential Brand Standard Audit and Re-audit | Approximately $250 to $1,500 per audit and re-audit |
| Owner Engagement Survey | $35 per unit |
| Annual Residential Project Assessment | $1,500 per visit |
| Residential Renovation Review | $3,000 to $7,500 |
| Document Review (Residential) | Varies (outside counsel costs) |
| Trademark Non-Compliance (Residential) | $10,000 for 1st default, $20,000 for 2nd default, $30,000 for 3rd default and subsequent defaults |
| Residential Operations Regional and Global Leadership Conference | $1,500 registration fee (regional) or $3,400 registration fee (global) plus all travel related expenses |
| Training (Residential) | Varies (e.g., $250 per person per year for multi-family associates, $4.60 to $5.10 per unit per year learning bundle) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Varies by program and role, e.g., Brand & Service Training (6-12 hours), Consumer Operations Training (20 hours over 10-12 weeks), Ethics + Integrity Training (1.5-3.5 hours), Functional Operations Training (0.5-6.5 hours), Administrative Training (0.5-1.0 hours), Electronic Systems Training (4-50 hours), Leadership Development – Connect U Training (124 hours), Loyalty Program Training (0.5-1.0 hours). Third-party training includes Alcohol Awareness (4 hours), Food Allergen (1 hour), Food Safety Certification (Associates: 2 hours, Management: 8 hours). |
| Classroom Training | Varies by program and role, e.g., Brand & Service Training (6-12 hours), Consumer Operations Training (20 hours), Ethics + Integrity Training (1.5-3.5 hours), Functional Operations Training (0.5-6.5 hours), Administrative Training (0.5-1.0 hours), Electronic Systems Training (4-50 hours), Leadership Development – Connect U Training (124 hours), Loyalty Program Training (0.5-1.0 hours). Third-party training includes Alcohol Awareness (4 hours), Food Allergen (1 hour), Food Safety Certification (Associates: 2 hours, Management: 8 hours). |
| On-the-Job Training | None |
| Training Location | Varies (web-based, designated Marriott locations, on-site at hotel for pre-opening task force training) |
| Additional Training | Supplemental food and beverage training (if operations do not meet standards), General Managers Conference (required in alternating years, $2,300 fee), Brand Awards/Alternate Conference Experiences ($300-$500 fee in alternating years), Service and Culture training programs ($400 per hotel), optional leadership training programs ($1,000-$10,000 per participant), Executive Orientation ($795 per person), Franchisee Introduction to Marriott (FITM) or FITM-R ($60,000), Franchisee OnBoarding for New Development (FOND) or API ($20,000). Residential training for director of residences (2-day session, no charge but travel/living expenses apply), additional periodic training for multi-family associates ($250 per person per year), and a learning bundle charge ($4.60-$5.10 per unit per year). |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Varies |
| Description | Franchisees operate one hotel at a specific approved site and do not receive exclusive territorial rights. Marriott and its affiliates retain the right to develop, operate, or franchise other lodging products, including other Courtyard hotels or Company Brand Hotels, at any location, even adjacent to the franchisee's hotel. If a territory is granted, it is non-exclusive, applies only to Courtyard hotels, and its size and duration are market-dependent, defined by radius or geographical boundaries, without implying rights to develop additional hotels or expand the existing one. The continuation of any territorial rights may be contingent on timely construction and opening. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years |
| Transfer Fee | The greater of $175,000 or $500 per guestroom |
| Transfer Conditions | Transferee must submit an application, pay the application fee, satisfy current owner qualifications (including no serious crime convictions, adverse conduct, or litigation with Marriott), retain a qualified management company, sign a new franchise agreement with current fees and standards, and the existing franchisee must pay all amounts owed and sign a release. Marriott's outside counsel fees for the transaction must also be paid. The transferee must be in good financial standing, and the hotel must be in good standing under the quality assurance program. Marriott has a right of first refusal if the transfer is to a competitor. |
| Termination for Cause | Marriott can terminate if the franchisee fails to cure any curable default (e.g., failure to start/complete construction, pay amounts due, comply with standards, or other breaches within 30 days) or if a non-curable default exists (e.g., insolvency, bankruptcy, violation of law, affiliation with a competitor, unauthorized transfers, cessation of operations, underreporting three or more times in 24 months, threat to public health/safety, failure to achieve quality assurance thresholds, or disclosure of confidential information). Termination can also occur if the franchisee or an affiliate sells or leases the hotel to, or becomes, a Competitor, or transfers interests to a Competitor. |
| Non-Compete Period | During the term of the franchise and under certain post-termination circumstances. |
| Non-Compete Details | During the term, franchisees are prohibited from diverting business from the hotel to other ventures or promoting unapproved businesses at the hotel. They cannot sell or lease the hotel to, or become, a competitor, or transfer ownership interests to a competitor without Marriott's approval, subject to Marriott's right of first refusal. Post-termination, if the franchise agreement is terminated due to casualty and the franchisee operates a non-Marriott brand hotel at the same site within the original term, liquidated damages are payable. Marriott's right of first refusal to acquire the hotel may also persist after termination under specific conditions. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisees must either operate the hotel themselves or hire a management company approved by Marriott. A general manager who has completed Marriott's training program must directly supervise the business full-time on-premises. If Marriott determines a franchisee is not qualified to operate the hotel, a management company will be required. Approved management companies typically need at least a 10% equity interest in the franchised business and must sign a Management Company Acknowledgment. Principals of the franchisee entity are generally required to provide a guaranty of obligations, with entity guaranties accepted in some cases based on net worth and credit history. |
| Required Suppliers | Franchisees must use FF&E, OS&E, and other goods/services that conform to Marriott's standards and specifications, which may include specific models/brands from designated or approved sources. Exterior building signs must be purchased from approved vendors. Only Pepsi-branded drinks are required to be served (with limited exceptions). Credit card transactions must be processed through Marriott's system interface with its designated processor. Franchisees must use Marriott's designated POS system, property management system (PMS), reservation system (MARSHA), yield management system (One Yield), and an opportunity management system. EMPOWER: Guest Experiences software (GxP) and its Reservations Add-On License are mandatory. An electronic lock system, enrollment in the Continent Field Support program for MCN-connected devices, and endpoint detection response (EDR) software with a managed detection and response (MDR) service are also required. |
| Supply Restrictions | Franchisees are restricted to using products and services that conform to Marriott's standards and specifications. Marriott may specify particular models, brands, or require purchases from designated or approved sources for FF&E, OS&E, food products, communication systems, and other goods/services. Specific restrictions include purchasing exterior signs from approved vendors, serving only Pepsi-branded drinks, processing credit card transactions through Marriott's system, and using designated POS, PMS, MARSHA, One Yield, opportunity management, EMPOWER GxP, electronic lock systems, Continent Field Support, and EDR/MDR software/services. |
| Franchisor Revenue from Suppliers | In 2022, Marriott and its subsidiaries received approximately $29,833,312 in revenue from franchisees' required purchases, retained unrestricted rebates, and other fees. This includes $676,500 from catalog/library participation fees, $5,947 from building product purchases, $52,679 (retained portion) from MIP Americas purchases, $42,000 in Sabre credits, $117,000 from Hertz car rentals, $275,000 (retained portion) from Expedia, $1,200,000 from Hertz (Tours & Activities), $1,475,000 from Expedia (Vacations by Marriott), $233,058 in allowances from Enterprise/Hertz, $200,000 from OpenTable, $3,000,000 from MVW, $2,677,599 from Guestroom Entertainment, $16,924,374 from Hotels at Home, $508,691 from Simmons rebates, $15,277 from ENCORE, $600,000 from a marketing program, $9,540,600 in credit card service fees ($2,415,000 from Courtyard), $6,000 in AT&T credits, and $1,172,537 from Talent Point. This total represents less than 0.14% of Marriott's total gross revenue for 2022. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Marriott International, Inc. generally does not offer direct or indirect financing or guarantee loans for franchised Courtyard hotels. However, in limited circumstances and at its sole discretion, Marriott may offer credit support as a contingent guaranty for a portion of a third-party loan or provide a mezzanine loan. Eligibility for such support considers market penetration, hotel size and location, economic environment, development costs, franchisee commitment to system growth, and meeting current criteria. The specific terms of any guaranty or mezzanine loan, including amounts, rates, security, and default provisions, are determined on a case-by-case basis and are not standardized. Marriott also offers development incentive programs, including reduced franchise fees for new development projects and modular construction projects, and a diversity development incentive program for historically underrepresented diverse owners, which may include discounted application fees and key money. |
Courtyard by Marriott Franchise Earnings — Item 19
Courtyard by Marriott does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Courtyard by Marriott does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Courtyard by Marriott Litigation & Risk Flags
12 Pending Actions ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Courtyard by Marriott System Growth
Total Units
1050
Franchised
863
Company-Owned
187
Courtyard by Marriott currently operates 863 franchised locations and 187 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 19 | 1 | 819 |
| 2021 | 34 | 3 | 849 |
| 2022 | 14 | 0 | 863 |
Transfers: 72 | Closures: 65
Franchisor Financials (Item 21)
Revenue
$20773.0M
Courtyard by Marriott Franchise — FAQ
The total investment to open a Courtyard by Marriott franchise ranges from $14,087,810 to $38,276,610, per their Franchise Disclosure Document. This includes the initial franchise fee of $90,000 plus $500 per guestroom in excess of 150 guestrooms. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Courtyard by Marriott charges a royalty fee of 6.0% of gross room sales of gross sales, plus a 2% of gross room sales (part of Program Services Contribution) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Courtyard by Marriott Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Courtyard by Marriott to ensure you have the most up-to-date version.
Courtyard by Marriott does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Courtyard by Marriott has been franchising since 1990. The FDD shows an investment range of $14,087,810-$38,276,610, a 6.0% of gross room sales royalty, and includes an Item 19 earnings disclosure. There are 12 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $90,000 plus $500 per guestroom in excess of 150 guestrooms and the total investment ranges from $14,087,810 to $38,276,610 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Courtyard by Marriott and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Courtyard by Marriott or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com