Motel 6 franchise research

Investment by format

Format-specific estimates only. Do not combine one format's minimum with another format's maximum.

Investment sourceFDD p.28 ↗

Franchise fees and ongoing costs

Franchise fee

$25,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review.

Royalty

5% · 5% of Gross Room Revenues, billed monthly upon invoice

Marketing contribution

Not captured

Technology fee

IT Services Fee: currently $400/month plus $4.00 per Authorized Guest Room/month (cap $500 + $6.00/room); PMS Software Fee: currently $4.00 per Authorized Guest Room/month (cap $6.00/room), both monthly upon invoice

Other fees

Program Fee (currently 3% of Gross Room Revenues, capped at 5.5%); Reservation Fee (currently 1% of Gross Room Revenues, capped at 2%); Booking Fees/Travel Agency Commissions (up to 20% of room rate and commissionable charges)

Working capital (FDD Item 7)

$110,000 - $175,000 (Additional Funds for Initial Phase, estimated cash needed to support 3 months of initial operations for a 100-room Motel)

Fees sourceFDD p.16 ↗

Working capital is drawn from Item 7. The Investment source below locates the investment section, not an independently verified working-capital scalar.

Investment sourceFDD p.28 ↗

Franchise fee sourceFDD · page not captured ↗

Financial performance: Item 19

Item 19 captured

Yes

Metric / basis

Average Occupancy Rate, Average Daily Rate (ADR), and Average RevPAR for select franchised Motels (no gross sales, EBITDA, or profit figures disclosed)

Reporting period

12-month period January 1, 2025 to December 31, 2025

Sample

Chart 1: 1,119 franchised Motels operating in the U.S. that were active/operating as franchised properties for at least two full years as of December 31, 2025. Chart 2: subset of 539 of those Motels (about 48.2%) with an internal A or B Ranking Score.

Reported average

Not captured

Reported median

Not captured

Owner income is not captured. Gross sales and EBITDA are not owner pay. Results depend on the disclosed metric, sample and period; consult the full filing.

Item 19 performance sourceFDD p.54 ↗

Unit growth: Item 20

Reporting year

2025

Scope

franchised outlets

Starting outlets

1195

Year-end outlets

1197

Net change

+2

Derivation

ending minus starting outlets

Openings

36

Terminations

30

Non-renewals

4

Other closures

0

Reacquisitions

0

Transfers

33

Transfers are not closures. Net change is ending minus starting outlets for the stated scope and year, or complete openings less terminations, non-renewals, other closures and reacquisitions. Missing inputs stay unknown.

Unit growth sourceFDD p.56 ↗

SBA loan history

Loan activity

194 approvals

Activity window

FY2021-FY2026 YTD; snapshot 2026-06-30

Median SBA loan

$2,480,000

Median loan window

FY2023-FY2026 YTD through 2026-06-30

Median loan sample

71 loans

Historical charge-off share

2.25%

Cohort

7(a) FY2010-2019 approvals

Numerator / denominator

5 / 222

Formula

CHGOFF / (PIF + CHGOFF + EXEMPT) × 100

This is a historical loan-level share, not a franchise failure probability or location survival rate. Loan size is not total investment. Other loan statuses are excluded from the seasoned denominator. Activity combines 7(a) and 504 approvals, excluding canceled and not-funded records; this is not a rolling five-year count. FY2024-25 franchise tags are sparse after directory suspension; fewer tagged loans do not establish brand decline. Recent charge-off cohorts are immature.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median loan amounts are financing context, not startup cost. The median window is separate from the seasoned charge-off cohort.

Median SBA loan sourceSBA data · Jun 30, 2026 ↗

Questions before you invest

How much does Motel 6 franchise cost?

Renovation (100-room, excluding land): $195,259 to $1,600,000; New Construction (100-room, excluding land): $6,251,265 to $8,900,000; Dual Brand Motel Renovation: $196,183 to $1,681,735; Motel 6 Classic Renovation: $709,479 to $2,145,596; Dual Brand Motel New Construction: $6,531,803 to $8,727,219 These are format-specific estimates, not a guaranteed cash requirement. Franchise fee: $25,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review..

Investment sourceFDD p.28 ↗

Franchise fee sourceFDD · page not captured ↗

How much do Motel 6 owners make?

Owner income is not captured. Gross sales and EBITDA are not owner pay. Item 19 metric: Average Occupancy Rate, Average Daily Rate (ADR), and Average RevPAR for select franchised Motels (no gross sales, EBITDA, or profit figures disclosed). Sample: Chart 1: 1,119 franchised Motels operating in the U.S. that were active/operating as franchised properties for at least two full years as of December 31, 2025. Chart 2: subset of 539 of those Motels (about 48.2%) with an internal A or B Ranking Score.. Period: 12-month period January 1, 2025 to December 31, 2025.

Item 19 performance sourceFDD p.54 ↗

What's the SBA charge-off rate for Motel 6?

2.25%; numerator / denominator: 5 / 222. Historical 7(a) FY2010-2019 approvals; CHGOFF / (PIF + CHGOFF + EXEMPT) × 100, snapshot 2026-06-30. This is not a franchise failure probability. Median SBA loan: $2,480,000; window: FY2023-FY2026 YTD through 2026-06-30; sample: 71 loans. Median financing is not total investment.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median SBA loan sourceSBA data · Jun 30, 2026 ↗