About Moxy Hotels Franchise
Moxy Hotels is a select-service hotel franchise operated under the Marriott International system, offering high-quality accommodations and related services to the traveling public.
Franchisees operate design-centric hotels featuring a vibrant style intended to meet the needs of next-generation travelers, with distinctive elements including a bar check-in experience, signature cocktail offerings, the Moxy Food Program, communal public spaces with games, a self-service Stash Closet amenity closet, and a Guest Book where guests record their experiences.
Guestrooms feature signature doors, hardwood flooring, platform beds, fold-out desks, industrial-finish bathrooms, and portable furniture mounted to open storage peg wall systems.
Moxy Hotels Franchise Cost & Fees
Minimum Investment
$13.9M
Average Investment
$29.3M
Maximum Investment
$44.7M
| 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 | 5.5% of Gross Room Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2.5% of Gross Room Sales (part of Program Services Contribution to Marketing Fund) | National brand fund |
| Total Investment Range | $13,905,810 – $44,666,210 | Includes build-out, inventory, working capital |
The investment range of $13.9M–$44.7M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5.5% of Gross Room Sales) and marketing fee (2.5% of Gross Room Sales (part of Program Services Contribution to Marketing Fund)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| VH Fee | $100,000 | $200,000 |
| Initial Franchise Application Fee | $90,000 | $115,000 |
| Pre-Opening Training, Revenue Management, Marketing & Digital Support, and Related Services | $50,000 | $86,000 |
| Property Management, Reservation, Yield Management, Opportunity Management, and Other Systems | $92,300 | $113,700 |
| Market Feasibility Study | $6,000 | $18,000 |
| Building Construction (100-150 rooms at $102,900-$190,200/room; 151-200 rooms at $102,700-$176,100/room) | $10,290,000 | $35,220,000 |
| Kitchen and Laundry Equipment | $280,000 | $810,000 |
| Furniture and Fixtures | $1,470,000 | $3,860,000 |
| Technology Hardware & Software and Network Infrastructure | $129,100 | $329,800 |
| Operating Supplies | $184,700 | $378,300 |
| Professional Design Services (including stylist) | $656,500 | $2,181,700 |
| Food Safety and Sanitation Compliance | $210 | $210 |
| Food and Beverage Consulting Services | $6,000 | $7,500 |
| Opening Advertising | $121,000 | $156,000 |
| Additional Funds (first 3 months) | $300,000 | $700,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | The greater of $175,000 or $500 per guestroom |
| Renewal Fee | Not applicable - franchise agreement is not renewable |
| Technology Fee | Covered partially by Program Services Contribution of 3.85% of Gross Room Sales plus $7,000 per year plus $135 per guestroom per year; additional technology fees vary by system |
| Audit Fee | Annual audit covered by Program Services Contribution; re-audits $1,350-$2,350 |
| Program Services Contribution | 3.85% of Gross Room Sales plus $7,000/year plus $135/guestroom/year |
| Marriott Bonvoy Loyalty Program | 1.55% of qualifying revenue plus 1% of qualifying event revenue (max $300/event) |
| Transaction-Based Media | 8% of applicable gross room revenues, not to exceed $200 per stay |
| Credit Card Processing | 0.065% of dollar amount of credit card transactions |
| Learning & Development Bundle | $11.40 to $12.60 per guestroom per year |
| Food & Beverage Support | $800 per year |
| Brand Experience & Activation Kits | $400 per shipment ($1,600/year for 4 shipments) |
| Interest on Overdue Amounts | Lesser of 18% per year or maximum rate permitted by law |
| Removal of Hotel from System | $12,000 |
| Red Zone Quality Assurance | $25-$100 per guestroom (max $50,000 per tracking period) plus $2,500 per required meeting |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Varies by role; pre-opening on-site training 8-14 days with 2-4 trainers; Brand & Service Training 6-12 hours; Consumer Operations Training approximately 20 hours over 10-12 weeks; Connect U Leadership Development 124 hours for GMs |
| Classroom Training | Varies by program: Brand & Service Training 6-12 hours depending on role; Consumer Operations 20 hours; Ethics & Integrity 1.5-3.5 hours; Functional Operations 0.5-6.5 hours; Electronic Systems 4-50 hours; Leadership Development 124 hours; Food Safety Management 8 hours; Alcohol Awareness 4 hours |
| On-the-Job Training | None specified for most programs; pre-opening includes 8-14 days of on-site training |
| Training Location | Varies - web-based for most ongoing training; on-site at hotel for pre-opening training; location designated by franchisor for immersion and orientation programs; Bethesda, Maryland area for Executive Orientation |
| Additional Training | Executive Orientation required for new-to-Marriott franchisee executives at least 12 months prior to opening ($795/person); Brand Immersion training for GMs ($1,000-$2,000/person); Management Company Immersion Training ($500-$1,000/person); FITM program ($60,000) or FOND program ($20,000) if required; General Managers Conference attendance required; optional leadership programs ($1,000-$10,000/participant); Alcohol Awareness (TiPS certification); Food Safety certification (ServSafe) |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Varies - may be defined as a radius around the hotel or delineated by streets, highways, or other geographical boundaries, if granted |
| Description | Franchisee receives a limited, non-exclusive license to operate one hotel at a specific approved location. Marriott and its affiliates retain rights to develop, own, operate, license, or franchise other hotels (including other Moxy Hotels and Company Brand Hotels) at any location, including locations adjacent or proximate to the franchisee's hotel. A territory may or may not be granted. If granted, it will generally: apply to Moxy Hotels only; apply for a duration less than the entire franchise term; not apply to existing or under-development hotels; not apply to chain acquisitions; and not apply to residential or condominium products. No options, rights of first refusal, or similar rights to acquire additional franchises are provided. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years after the date the hotel is authorized to open as a system hotel |
| Renewal Term | Not renewable - the franchise agreement expires at the end of the term and the rights granted are not renewable. Franchisee has no expectation of any right to extend the term. |
| Renewal Fee | Not applicable |
| Renewal Conditions | Not applicable - after expiration, Marriott may in its sole discretion agree to enter into a new franchise agreement on then-current form with materially different terms |
| Transfer Fee | The greater of $175,000 or $500 per guestroom |
| Transfer Conditions | Requires Marriott's prior consent; transferee must submit application and pay application fee; satisfy then-current owner qualifications; retain qualified management company; sign new franchise agreement with then-current fees and standards; complete property improvement plan; franchisee must pay all amounts owed and sign general release; pay Marriott's outside counsel costs; hotel must be in good standing under quality assurance program |
| Termination for Cause | Immediate termination without cure for: insolvency/bankruptcy; becoming a Restricted Person; violation of applicable law; becoming affiliated with a Competitor; unauthorized transfers; dissolution/liquidation; loss of right to operate hotel; ceasing operation as system hotel; pattern of underreporting (3+ times in 24 months); threat to public health/safety; failure to achieve quality assurance thresholds; disclosure of confidential information. 30-day cure period for: failure to timely start/complete construction or open hotel; failure to pay amounts due; default of other agreements; conviction of serious crime; failure to comply with standards; other breaches. |
| Non-Compete Period | During term and post-termination (right of first refusal survives 6 months after early termination for transfers to Competitors) |
| Non-Compete Details | During the term, franchisee may not use any part of the hotel to divert business to or promote a different business. Franchisee and affiliates may not sell or lease the hotel to, or become, a Competitor, or transfer interests to a Competitor without prior approval, subject to Marriott's right of first refusal. Post-termination, if hotel is damaged by casualty resulting in termination and franchisee operates a replacement non-Company Brand hotel at the site during the original term, liquidated damages must be paid. Marriott's right of first refusal to purchase or lease the hotel continues after certain terminations. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisees must operate the hotel or hire a management company consented to by Marriott. A general manager who has successfully completed Marriott's training program must directly supervise the business on the premises. Managers must devote full time to hotel management and operation. If Marriott determines the franchisee is not qualified to operate the hotel, a management company must be retained. If the franchisee or a company under its control will not operate the hotel, the on-premises management company generally must have at least a 10% equity interest in the franchised business. Principals of entity franchisees may be required to sign a guaranty. |
| Required Suppliers | Franchisees must use FF&E, OS&E, and other goods conforming to Marriott standards and specifications. Marriott may specify particular models or brands available from only one manufacturer. Exterior building signs must be purchased from approved sign vendors. Pepsi products designated as standard for certain beverages. Credit card transactions must be processed through Marriott's system interface. Franchisees must use designated POS system, property management system, reservation system, and other electronic systems. |
| Supply Restrictions | Franchisees may purchase FF&E through Marriott Design & Construction (fee of greater of $3,500 or 4.5-5% of cost). Franchisees may purchase recurring supplies through MIP Americas purchasing programs. Alternative suppliers require written approval from Marriott. Marriott may designate suppliers for certain items. Internet service providers must be certified and approved by Marriott. |
| Franchisor Revenue from Suppliers | In 2022, total revenue from franchisee required purchases was approximately $29,833,312, less than 0.14% of Marriott's total gross revenue of $20,773,000,000. This included catalog/library participation fees ($676,500), Hotels at Home revenue ($16,924,374), Simmons rebates ($508,691), credit card service fees ($9,540,600), AT&T credits ($6,000), and Pepsi unrestricted allowances ($2,177,147). |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Marriott generally does not offer direct or indirect financing or guarantee financing. However, under very limited circumstances and at sole discretion, Marriott may offer credit support in the form of a contingent guaranty of a portion of a third-party loan, or may make a mezzanine loan. Development incentive programs available include: New-to-System Projects (VH fee paid by Marriott if franchise agreement signed before March 31, 2024); Modular Construction Projects (key money up to $150,000-$250,000 depending on tier); Diversity Development Incentive Program (discounted $10,000 application fee, $3,500/guestroom key money, and reduced franchise fees of 3% years 1-2, 4.5% year 3, 5.5% thereafter for qualifying diverse owners). |
Moxy Hotels Franchise Earnings — Item 19
Moxy Hotels 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.
Moxy Hotels 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.
Moxy Hotels Litigation & Risk Flags
7 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.
Moxy Hotels System Growth
Total Units
28
Franchised
28
Company-Owned
0
Moxy Hotels currently operates 28 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 |
|---|---|---|---|
| 2020 | 0 | 0 | 21 |
| 2021 | 5 | 0 | 26 |
| 2022 | 2 | 0 | 28 |
Transfers: 2 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$20773.0M
Net Income
$2358.0M
Total Assets
$24815.0M
Audited by Ernst & Young LLP for year ending December 31, 2022.
Moxy Hotels Franchise — FAQ
The total investment to open a Moxy Hotels franchise ranges from $13,905,810 to $44,666,210, 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.
Moxy Hotels charges a royalty fee of 5.5% of Gross Room Sales of gross sales, plus a 2.5% of Gross Room Sales (part of Program Services Contribution to Marketing Fund) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Moxy Hotels 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 Moxy Hotels to ensure you have the most up-to-date version.
Moxy Hotels 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.
Moxy Hotels has been franchising since 2014. The FDD shows an investment range of $13,905,810-$44,666,210, a 5.5% of Gross Room Sales royalty, and includes an Item 19 earnings disclosure. There are 7 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 $13,905,810 to $44,666,210 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
Similar Hospitality & Travel Franchises
Interested in Moxy Hotels?
Get free info on this franchise. We will send you a detailed FDD report by email.
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 Moxy Hotels and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Moxy Hotels or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com