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Motel 6

Information based on 2024 FDD
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Brand Highlights
  • Founded in 1962
  • Franchising Since 1996
  • 1208 US Franchises
  • $195,259 - $1,470,540 Investment Range
  • N/A Average Gross Revenue
  • 5% Royalty Fee
  • $25,000 Franchise Fee
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Brand Description

Motel 6, an iconic name in American hospitality, has been providing travelers with reliable, clean, and comfortable accommodations since 1962. Known for their famous slogan 'We'll leave the light on for you,' Motel 6 has built a trusted reputation as America's original economy lodging chain, offering essential amenities at competitive rates.

The brand's success stems from its straightforward business model and commitment to consistency. Each location adheres to standardized quality measures while maintaining modern, efficient operations. The properties feature renovated rooms with wood-effect flooring, flat-screen TVs, and expanded cable channels, ensuring guests enjoy contemporary comfort without unnecessary frills.

As a Motel 6 franchisee, you'll benefit from joining a well-established hospitality network with strong brand recognition and a proven operational system. The franchise provides comprehensive support including site selection assistance, architectural guidance, training programs, and ongoing operational support. Their marketing strategies leverage both traditional and digital channels to drive bookings and maintain steady occupancy rates.

What sets Motel 6 apart is its strategic positioning in the economy lodging segment, catering to both business and leisure travelers seeking reliable, no-nonsense accommodations. The brand's widespread presence across North America, particularly along major highways and in key cities, ensures a steady flow of guests who appreciate its value proposition.

For entrepreneurs interested in the hospitality industry, Motel 6 offers a time-tested business model backed by decades of experience and a parent company committed to franchisee success.

DID YOU KNOW?

How much does it cost to start a franchise with Motel 6?

$195,259
$1,470,540
Did you know that launching your own Motel 6 franchise, part of America's iconic budget lodging chain known for leaving the light on for travelers, requires a total investment ranging from $195,259 to $1,470,540 depending on your location and property size, which includes the $25,000 franchise fee plus all the essential startup costs like property development, furnishing, signage, and working capital needed to open your doors to road-weary guests?
Financial Summary
Franchise Fee
$25,000
Investment Range
$195,259 - $1,470,540
Investment Midpoint
$832,900
Minimum Cash Required
$195,259
Royalty Fees
5%
Brand Fund
N/A
Brand Bragging Rights
Over 60 years of proven hospitality experience since 1962
1,210 locations providing nationwide market presence
Economy segment recession-resistant market positioning
Significantly lower investment barrier compared to Hotel Resorts sub-sector average
Established budget traveler brand recognition and loyalty
Extensive operational systems and infrastructure support network
Financial Analysis
Motel 6 presents an accessible entry point into the Hotel Resorts sub-sector with investment requirements of $195,259 - $1,470,540, significantly lower than the sub-sector average of $6.2-7.7 million. This positions the brand as an economy-tier hospitality investment targeting budget-conscious travelers and cost-efficient operators.

The lodging industry benefits from consistent travel demand and growing domestic tourism, though faces headwinds from alternative accommodations and economic sensitivity. Motel 6's economy positioning provides recession-resistant appeal as travelers seek affordable options during economic uncertainty.

With 1,210 units and over 60 years of operation since 1962, the franchise demonstrates substantial system maturity and market penetration. This extensive footprint indicates proven operational systems and established brand recognition in the budget lodging segment, providing franchisees with tested business models and infrastructure support.

Important Note: Revenue data is not available for this franchise, limiting comprehensive financial performance analysis. Additionally, the sub-sector average gross revenue figure of $57,358 appears unusually low for the Hotel Resorts segment and may indicate data quality limitations that prospective investors should investigate further.

Investment considerations include property acquisition or lease requirements, ongoing renovation needs, and labor-intensive operations requiring experienced hospitality management. The lower investment threshold enables multi-unit development opportunities for qualified investors seeking portfolio expansion.

Prospective franchisees must thoroughly review the Franchise Disclosure Document and conduct comprehensive due diligence, including independent market analysis and financial performance verification, before making investment decisions.
Expected Investment Range
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Average Gross Sales
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Financing
Financing Details

Franzy connects you with top-tier financing partners to help secure the funds to invest in a franchise like Motel 6. Whether you're looking for a loan or exploring other financial products, our partners provide expert guidance to ensure you obtain the necessary capital. They specialize in offering solutions tailored to the needs of franchisees, making the process of securing financing smooth and straightforward.

Why Financing with Franzy Partners?

Choosing to finance through Franzy's partners ensures you get the best terms and support for your franchise investment. Our partners have extensive experience in the franchising industry and offer specialized financial solutions tailored to your needs. With competitive interest rates and flexible repayment options, you can find the right financing plan that fits your budget and goals. Our partners are committed to providing personalized guidance throughout the financing process, making it easier for you to secure the necessary funds and confidently move forward with your franchise venture.

Finance Partners
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First Bank of the Lake

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Golden Capital Solutions

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Location Analysis
Motel 6 demonstrates a robust national presence across numerous states, showcasing particularly strong market penetration in the Sun Belt and major travel corridors. The brand maintains a significant presence in California, with notable concentrations in Texas, Illinois, Georgia, and Arizona, indicating strategic positioning along major interstate highways and tourist destinations. This distribution pattern aligns with high-traffic travel routes and population centers, particularly in warm-weather states with significant tourism and business travel.

The franchise shows particular strength in markets characterized by high interstate traffic, proximity to airports, and tourist destinations. Successful locations typically feature visibility from major highways, accessibility to business districts, and proximity to entertainment venues or tourist attractions. The strong presence in states like California and Texas suggests strong performance in markets with year-round travel demand.

Growth opportunities exist in several states currently without presence, particularly in the Northeast and Upper Midwest. Ideal new locations should target areas with strong tourism indicators, business travel patterns, and interstate highway access. Key success factors include properties with at least 60 rooms, locations within 2 miles of major highways, and markets with consistent year-round occupancy potential. The brand's economy positioning provides competitive advantages in markets seeking value-oriented lodging options, particularly in secondary and tertiary markets where full-service hotels may be limited.
Total US Locations1210
Open Franchises1208
Corporate Locations2
Average Sq. FootN/A
Territory Map

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Franchise Net Unit Growth
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Additional Information

Executive Team

Get to know the leadership behind Motel 6. Learn about the experience and expertise of the executive team guiding Motel 6's success. For more details, refer to Item 2 of the Franchise Disclosure Document (FDD).

Litigation

Review any legal actions or pending litigation involving Motel 6. Understanding the legal history helps assess potential risks and the brand's business practices. For more details, refer to Item 3 of the Franchise Disclosure Document (FDD).

Bankruptcy

Review Motel 6's bankruptcy history and any filings by key personnel or affiliates. This critical information provides transparency about the brand's financial stability and management. For more details, refer to Item 4 of the Franchise Disclosure Document (FDD).

Franchisor Assistance

Learn about Motel 6's comprehensive support system for franchisees, including initial training programs and continuous operational assistance. Understanding the available resources and support structure is crucial for franchise success. For more details, refer to Item 11 of the Franchise Disclosure Document (FDD).

Frequently Asked Questions
Disclaimer

The information provided on this page is based on the latest Franchise Disclosure Document (FDD) that is publicly available and that we have on record, which was issued in 2024. This information is for informational purposes only and is not intended to constitute legal, financial, or business advice. We make no guarantees or claims regarding the completeness or accuracy. For the most current and detailed information, we recommend consulting the franchisor directly for the most recent FDD and regarding any questions that you may have about the information provided.

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