Franchimp Summary Rating
Higher than 61% of peers
Higher than 94% of peers
Franchise Summary
Description
The franchised business being offered is Sheraton. All franchised Sheraton Hotels in the United States and Canada are part of a single system.
Company Background
Sheraton is a global chain of full-service hotels and resorts owned by Marriott International. The Sheraton company has been in business for nearly 100 years and has over 500 locations around the world. They offer modern accommodations with on-site amenities such as swimming pools, fitness centers, restaurants, room service, concierge services and more.
Franchise Opportunity
Owning a Sheraton hotel can be a lucrative investment, but it's important to have a clear understanding of the franchise agreement before signing on the dotted line. The Sheraton LLC is a well-respected company with over 70 years of experience in the hotel industry. However, that doesn't mean that every aspect of the franchise agreement is favorable to the investor. The Sheraton LLC has put together an informative website that breaks down each section of the franchise agreement so you can make an informed decision about whether or not owning a Sheraton hotel is right for you.
Corporate Structure
The franchisor is MIF, L.L.C., a Delaware limited liability company, offering franchises for Sheraton Hotels since 1974, with its principal business address at 7750 Wisconsin Avenue, Bethesda, Maryland 20814, and is a subsidiary of Marriott International, Inc.
Royalties and Marketing Fees
Royalties : 6.0% of revenue
Franchisee Attrition
This franchise's rate of attrition in 2013
of 5.37%
was
Slightly Higher
than the 5% in the Hotels & Resorts industry. Generally speaking, a higher rate of attrition represents a less stable franchise system and a lower rate of attrition indicates a more successful system
What's Included in franchise attrition?
We define the franchisee attrition rate as the sum of terminations, re-acquisitions by
franchisor, non-renewals, and ceased operations, divided by the number of outlest at the start of the year.
It is a strong indicator of the strength of the underlying operating model
Franchise Types Available
| # | Type | Investment | Fees |
|---|
Distribution of Sheraton Franchisees
Sheraton Franchise System Development in 2024
FAQ
How much investment do I need to start my own Sheraton business?
Franchisees typically require at least $80,917,490 to $132,192,890 investment to get their Sheraton business started
What are the initial franchise fees for Sheraton?
Franchisees typically need to pay at least $289,700 in fees directly to Sheraton in order to earn the right to launch their business
How much money can I make with a Sheraton franchise? What are
the average revenues for a typical Sheraton business?
We haven’t done the math on how much revenue a typical
Sheraton brings in each year. We estimate that other
franchisees in the Lodging & Leisure industry generate
$882,894 revenue, so we would expect
Sheraton to generate a similar amount
How long do I need to commit to running a Sheraton unit? What
is my contractual commitment?
The standard length for an initial franchise contract is 10 years. Renewals are
also generally 10 years
Accessibility
The Franchisor's investment costs ranges from
$80,917,490 to $132,192,890
which is
Much Higher
than the $0 to $0 average in the Hotels & Resorts industry
What determines the investment cost?
Item 7 of the Franchise Disclosure Document lays out the full list of initial investment costs, including the fee payable to the franchisor, security deposits, equipment, professional fees etc
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