About The Ritz-Carlton Residences Franchise
The Ritz-Carlton Residences is a luxury branded residential franchise that brings the legendary Ritz-Carlton standard of elegance and service to residential living.
Operating under Marriott International, Inc., the brand has been franchising since 2012, offering developers the opportunity to create high end residential communities that carry one of the most prestigious names in global hospitality.
The franchise fee ranges from $150,000 to $1,000,000, reflecting the ultra premium nature of the brand and the scale of residential development projects.
The Ritz-Carlton Residences Franchise Cost & Fees
Minimum Investment
$805K
Average Investment
$3.3M
Maximum Investment
$5.7M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $150,000 to $1,000,000 | One-time payment upon signing |
| Royalty Fee | 6% of the aggregate Residential Gross Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 0 | National brand fund |
| Total Investment Range | $805,000 – $5,745,000 | Includes build-out, inventory, working capital |
The investment range of $805K–$5.7M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of the aggregate Residential Gross Revenues) and marketing fee (0) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Technical Services Fee | $150,000 | $1,000,000 |
| Brand Commitment Fee | $100,000 | $1,000,000 |
| Insurance | N/A | N/A |
| Sales Office | $350,000 | $2,000,000 |
| Licensor Office Space | $25,000 | $50,000 |
| Initial Training | $10,000 | $20,000 |
| Operating Supplies | $15,000 | $25,000 |
| Start-Up Costs | $100,000 | $1,500,000 |
| Advertising | N/A | N/A |
| Market Study | $30,000 | $100,000 |
| Additional Funds (first 3 months) | $25,000 | $50,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Construction Defects Reserve | 1% of the Residential Gross Revenues of each Unit |
| Purchase Price Deposits Escrow | All deposits and/or purchase price installments received from each purchaser of a Unit |
| Default Fees | $10,000 for the first default, $20,000 for the second default, and $30,000 for each additional default |
| Indemnification/Contribution | Will vary under the circumstances |
| Attorneys’ Fees and Costs | Will vary under the circumstances |
| Additional Compensation | Will vary under the circumstances |
| Ongoing Training | Will vary under the circumstances |
| Data Protection | Will vary under the circumstances |
| Management Fee | For the 1st year, the greater of 10% of the 1st year budget for the Residential Condominium or $2,000 per unit; thereafter, 10% of the annual budget for the Residential Condominium, but no less than the Minimum Fee increased in each subsequent year by 5% |
| Advances and Reimbursements | All costs and expenses Condominium Manager incurs in providing the Management Services |
| Reserve Account Deposits | The amounts required under the budget of the Residential Condominium for each fiscal year |
| Manager Personnel Wages | Will vary under the circumstances |
| Indemnification (Management Agreement) | Will vary under the circumstances |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Initial training program consists of 2 hours of Trademark and Graphics training and 6 hours of Initial Brand Orientation. |
| Classroom Training | 8 |
| On-the-Job Training | 0 |
| Training Location | By Telephone (Trademark and Graphics); Your Site or Marriott Headquarters (Initial Brand Orientation) |
| Additional Training | Licensees are required to design or select a training program for all agents, employees, salespersons, and other entities responsible for offering and selling Units. The franchisor may require an initial training course and thereafter a periodic (but not more frequent than annual) update course for the Ritz-Carlton brand, at the licensee's expense. The marketing team, including the marketing manager, must attend and successfully complete the initial trademarks and graphic design training program. The sales team, including the sales manager, must attend and successfully complete the initial brand orientation training program. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive with limited restricted territory |
| Exclusive Territory | No |
| Description | Licensees will not receive an exclusive territory. The license permits use of marks only for marketing, offering, and selling Units at the Residential Condominium. A limited restricted territory may be granted where the franchisor agrees not to open or authorize others to open luxury residential projects under the Marks for a period (typically 2-3 years after all units are projected to be sold, or until 85% of units are under contract). This restricted territory does not apply to hotels, overnight lodging, timeshare/vacation club products, or mixed-use developments where Destination Club Units are at least 35% of combined units and total Ritz-Carlton branded units are 35 or fewer. The franchisor retains rights to develop, promote, market, own, operate, lease, license, franchise, and/or manage other residential condominiums or lodging products at any location, including those proximate to the Project, which may compete directly with the licensee's business. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | License Agreement: earlier of 5 years from Effective Date or sale/closing of all Units. Management Agreement: last day of 30th full fiscal year after Opening Date. |
| Renewal Conditions | The License Agreement and Management Agreement are not renewable, and you (and the counterparty under the Management Agreement) should not have any expectation that you will be granted any additional rights to operate the Licensed Business using our brand after the expiration of the term. |
| Transfer Conditions | No transfer may occur without prior written approval from the franchisor (License Agreement) or Condominium Manager (Management Agreement), which may be withheld for any reason. The franchisor may condition a transfer for any reason. |
| Termination for Cause | Licensor can terminate the License Agreement if the licensee fails to cure any curable default or if a non-curable default exists. Specific causes include failure to close and fund the construction loan by the first anniversary, failure to enter signed contracts for at least 50% of projected units, failure to begin construction by a specified date, or any event adversely reflecting on the Marks. Immediate termination can occur if the Management Agreement terminates or the Residential Condominium Association fails to execute it. Condominium Manager can terminate the Management Agreement for similar reasons, including the Association's failure to cure defaults, material limitations in managing the Condominium or Common Elements, or actions by the Association/Board that materially limit management ability or affect the Marks. |
| Non-Compete Period | None |
| Non-Compete Details | None |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The licensee must participate in the operation of the Licensed Business. If the licensee lacks satisfactory in-house sales experience, they must engage a third-party marketing and sales team with demonstrated experience in luxury residential projects, subject to franchisor approval. If the licensee has satisfactory in-house sales experience, they must retain an in-house sales manager and marketing manager, subject to franchisor approval. Any replacements for these managers are also subject to approval. The marketing and sales team and managers must complete required initial and future additional training. Managers are not required to have an equity interest or sign non-competition agreements. Licensees must maintain ownership and control of all components of the Licensed Business. If the licensee is an entity, its principals must sign a guaranty of obligations or provide alternative security. |
| Required Suppliers | Licensees must use only FF&E, supplies, and other goods and services that conform to the franchisor's Standards and specifications. The franchisor may modify these standards at its discretion. If the franchisor has approved suppliers for any items, licensees must obtain those items from approved suppliers. The Residential Condominium Association must also enter into a Management Agreement with the Condominium Manager (Marriott or an affiliate) to manage daily affairs and common elements. Licensees must use only franchisor-approved forms for sales contracts or purchase agreements for Units. |
| Supply Restrictions | Licensees must obtain items from franchisor-approved suppliers if such suppliers exist for particular items. The franchisor may change the number of approved suppliers at any time and may designate itself, an affiliate, or a third party as the exclusive source for any particular item. The franchisor may profit from purchases and leases from approved suppliers and may receive payments, fees, commissions, or reimbursements from such suppliers. |
| Franchisor Revenue from Suppliers | Neither we nor our affiliates received any revenue from the sale of products or services to licensees in the last fiscal year or any payments from any designated sources because of transactions with licensees in the last fiscal year. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Neither we nor any agent or affiliate of ours offers direct or indirect financing. Neither we nor any agent or affiliate of ours guarantees your note, lease or obligations. |
The Ritz-Carlton Residences Franchise Earnings — Item 19
The Ritz-Carlton Residences 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.
The Ritz-Carlton Residences 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.
The Ritz-Carlton Residences Litigation & Risk Flags
10 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.
The Ritz-Carlton Residences System Growth
Total Units
12
Franchised
12
Company-Owned
0
The Ritz-Carlton Residences currently operates 12 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 2 | 1 | 11 |
| 2020 | 2 | 0 | 13 |
| 2021 | 0 | 1 | 12 |
Transfers: 0 | Closures: 1
State Registrations
Registered in 3 states: HI, MD, VA
Franchisor Financials (Item 21)
Revenue
$64.7M
Net Income
$32.8M
Total Assets
$297.6M
Audited by Ernst & Young LLP for year ending December 31.
The Ritz-Carlton Residences Franchise — FAQ
The total investment to open a The Ritz-Carlton Residences franchise ranges from $805,000 to $5,745,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $150,000 to $1,000,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
The Ritz-Carlton Residences charges a royalty fee of 6% of the aggregate Residential Gross Revenues of gross sales, plus a 0 contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the The Ritz-Carlton Residences 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 The Ritz-Carlton Residences to ensure you have the most up-to-date version.
The Ritz-Carlton Residences 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.
The Ritz-Carlton Residences has been franchising since 2012. The FDD shows an investment range of $805,000-$5,745,000, a 6% of the aggregate Residential Gross Revenues royalty, and no Item 19 earnings disclosure. There are 10 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 $150,000 to $1,000,000 and the total investment ranges from $805,000 to $5,745,000 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 The Ritz-Carlton Residences and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with The Ritz-Carlton Residences or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com