Sheraton is one of the world's most recognized full service hotel brands, operating under the Marriott International portfolio. With 147 franchised hotels and 25 company owned properties in the United States, Sheraton caters to both…
Total Investment
$76.4M – $124.6M
Franchise Fee
$100,000 (new-to-system, 250-guestroom hotel; plus $400 per guestroom in excess of 250); $150,000 or $500 per guestroom (existing Sheraton Hotel, whichever is greater)
Royalty Rate
6% of gross room sales plus 2% of gross food and beverage sales Gross Sales
Total Units
172
Franchising Since
N/A
🌻About Sheraton Franchise
Sheraton is one of the world's most recognized full service hotel brands, operating under the Marriott International portfolio.
With 147 franchised hotels and 25 company owned properties in the United States, Sheraton caters to both business and leisure travelers with upscale accommodations, meeting and event spaces, dining options, and resort amenities.
The brand benefits from Marriott's global reservation system, loyalty program, and extensive marketing infrastructure.
💰Sheraton Franchise Cost & Fees
Minimum Investment
$76.4M
Average Investment
$100.5M
Maximum Investment
$124.6M
Fee Type
Amount
Notes
Initial Franchise Fee
$100,000 (new-to-system, 250-guestroom hotel; plus $400 per guestroom in excess of 250); $150,000 or $500 per guestroom (existing Sheraton Hotel, whichever is greater)
One-time payment upon signing
Royalty Fee
6% of gross room sales plus 2% of gross food and beverage sales of gross sales
Ongoing; paid monthly
Total Investment Range
$76,442,490 – $124,617,890
Includes build-out, inventory, working capital
The investment range of $76.4M–$124.6M reflects variability in build-out costs, store size, lease terms, and market. The ongoing royalty fee is 6% of gross room sales plus 2% of gross food and beverage sales of gross sales.
📊Sheraton Franchise Earnings — Item 19
!
Sheraton 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.
Sheraton 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.
⚖Sheraton Litigation & Risk Flags
✓
Clean Litigation RecordSheraton has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
📈Sheraton System Growth
Total Units
172
Franchised
147
Company-Owned
25
Sheraton currently operates 147 franchised locations and 25 company-owned units. Unit count data is sourced from Item 20 of the FDD.
❓Sheraton Franchise — FAQ
The total investment to open a Sheraton franchise ranges from $76,442,490 to $124,617,890, per their Franchise Disclosure Document. This includes the initial franchise fee of $100,000 (new-to-system, 250-guestroom hotel; plus $400 per guestroom in excess of 250); $150,000 or $500 per guestroom (existing Sheraton Hotel, whichever is greater). The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Sheraton charges a royalty fee of 6% of gross room sales plus 2% of gross food and beverage sales of gross sales. These fees are paid on an ongoing basis.
You can download the Sheraton 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 Sheraton to ensure you have the most up-to-date version.
Sheraton 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.
Sheraton has been offering franchise opportunities. The FDD shows an investment range of $76,442,490-$124,617,890, a 6% of gross room sales plus 2% of gross food and beverage sales royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $100,000 (new-to-system, 250-guestroom hotel; plus $400 per guestroom in excess of 250); $150,000 or $500 per guestroom (existing Sheraton Hotel, whichever is greater) and the total investment ranges from $76,442,490 to $124,617,890 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 Sheraton and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Sheraton or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com
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Sheraton
Total Investment
$76.4M – $124.6M
💰 Costs & Fees
Franchise Fee$100,000 (new-to-system, 250-guestroom hotel; plus $400 per guestroom in excess of 250); $150,000 or $500 per guestroom (existing Sheraton Hotel, whichever is greater)
Royalty6% of gross room sales plus 2% of gross food and beverage sales
FinancingNot Available
🏢 System Overview
Total Units172
Earnings Claim (Item 19)No
📄 Contract Terms
⚖️ Legal & Risk
Pending LitigationClean
Bankruptcy HistoryNone
Download the Full Sheraton FDD
2024 · Public Registry Document
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