Bottom line
- Total investment $195K – $8.2M including a $25K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 56/100. SBA loan default rate of 0.0% across 755 loans (below the industry average).
- System contracting at -100% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Motel 6 unit return on the cash you put in?
Unlevered ROIC · per unit
2%
Below typical band (30–60%)
Overview
About
Motel 6 franchisees operate budget-tier hotel properties, managing daily guest check-ins/check-outs, housekeeping, maintenance, front desk operations, and ancillary services. Franchisees pay 5% royalty on gross room revenues to G6 Hospitality while maintaining brand standards, adhering to safety/privacy protocols, and competing in the economy lodging segment.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 5 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Motel 6 presents CAUTION-level risk: a declining budget hotel system with serious data privacy litigation, multiple franchise disputes, zero financial transparency, and revenue/income figures withheld from disclosure.
Score breakdown · what drove the 56 / 100 rating
- 01MINORDeclining unit count (-0.9% YoY) signals shrinking franchise system despite 1,195 locations
- 02MEDNo disclosed average revenue or net income (Item 19) prevents financial performance validation and suggests weak or inconsistent unit economics
- 03HIGHMultiple active litigation cases including franchise termination disputes, data privacy class actions, and franchisor collection actions indicate systemic operational and legal friction
- 04HIGHData privacy litigation (Jane V. class action, Washington State action) over guest information disclosure to immigration authorities creates reputational and operational liability risk
- 05MINORFranchisor initiating collection actions against franchisees (G6 Hospitality vs. Aesha LLC) suggests cash flow stress among operators
- 06MED20-year term length is lengthy for a declining brand with limited financial transparency
- 07MEDHigh investment ceiling ($8.2M) with 5% royalty on undisclosed revenues creates uncertainty on ROI calculations
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
99 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Motel 6 · FDD (2025) PDF