Motel 6 Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Motel 6 is an economy-lodging franchise of no-frills budget motels. Franchisees own and operate individual properties, running check-in, housekeeping, and maintenance in the price-competitive economy segment.
FranchiseVerdict summary · 2026
A Motel 6 franchise requires a total initial investment of $195K – $1.5M, including a $25K franchise fee and an ongoing 5.0% royalty[2]. The 2026 FDD on file does not yield a unit-revenue figure we can publish. SBA 7(a) loans show a 4.6% charge-off rate across 615 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $195K – $1.5M
- 9th pct Lodging
- Avg gross sales
- N/A
- Projection
- Royalty
- 5.0%
- 3rd pct Lodging
- Units
- 1,195
- 70th pct Lodging
- SBA charge-off
- 4.6%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $195K – $1.5M including a $25K franchise fee, 5.0% ongoing royalty.
- RETURNSItem 19 reports occupancy, ADR and RevPAR rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict A (Strongest tier), verdict score 85/100 (higher is better). SBA loan charge-off rate of 4.6% across 615 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- DATAItem 19 reports occupancy, ADR and RevPAR rather than annual gross sales, so unit revenue is not directly comparable. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- G6 Hospitality Franchising LLC
- Parent company
- G6 Hospitality LLC
- Ultimate parent
- OYO Hotels Inc.
- Predecessor
- Accor Franchising North America, LLC
- Prior franchisor entity
- CEO title
- Chief Development Officer (contact listed in Item 19)
- Tina Burnett
- Incorporated in
- DE
- HQ
- 2633 McKinney Avenue, Suite 130-524, Dallas, Texas 75204
- Auditor
- JLK Rosenberger, LLP
- Audited financials
- Franchisor revenue
- $72.1M
- vs $70.8M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Tina Burnett
- Headquarters
- TX
- Founded
- 1962
- FDD year
- 2026
- States available
- 50
Can you afford it, and what does the money buy?
Entry cost runs 92% below the typical lodging franchise.
Source: FDD 2026 · Items 5–7
published investment is a conversion of an existing 100-room motel. The same filing prices new construction separately at $6,251,265-$8,239,350.
Full Item 7 breakdown20 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Market Feasibility Study | $0 | $15K | |
| Property Ownership or Acquisition Costs | — | — | |
| Initial Fees Paid to Us | $41K | $41K | |
| Opening Extension Fee | — | — | |
| Ancillary Trip Fee | — | — | |
| Architectural, Design Fees (Planning & Due Diligence) | $0 | $270K | |
| Site and/or Civil Work | $0 | $250K | |
| Construction Expenses | $0 | $6.3M | |
| Construction Contingency | $0 | $315K | |
| Furniture, Fixtures & Equipment (FF&E) | $17K | $556K | |
| FF&E Contingency | $0 | $28K | |
| Signage | $6K | $61K | |
| WIFI Infrastructure | $0 | $10K | |
| Telephone System | $700 | $10K | |
| PMS and Credit Card Processing Equipment | $4K | $6K | |
| Opening Inventory & Supplies | $27K | $190K | |
| Insurance | — | — | |
| Utility Deposits | — | — | |
| Grand Opening Expense | $0 | $5K | |
| Additional Funds for Initial Phase (3 months of operations) | $100K | $160K | |
| Total initial investment | $195K | $8.2M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $195K – $1.5M
- Top 40% of category vs category
- Liquid capital req'd
- $100K – $160K
- Top 40% of category vs category
- Franchise fee
- $25K – $25K
- Top 40% of category vs category
- Royalty
- 5.0%
- typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $300 |
| Transfer fee | $13K |
| Renewal fee | $13K |
| Inventory (initial) | $27K – $80K |
| Total fee load | 8.0% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Motel 6 is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Motel 6 unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
An occupancy metric, not unit revenue
- Item 19 type
- occupancy, ADR and RevPAR
- Sample size
- 1,107
- vs category median 98 · large
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2024
Compared against 175 Lodging brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 8.0% — below the Lodging average of 10.4%.
Disclosure
Item 19 reports occupancy, ADR and RevPAR rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System roughly stable (-1.0% 3-year CAGR) with 1,195 units.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Lodging averages
How Motel 6 Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,195
- Opened
- 48
- Last reporting year
- Closed
- 59
- Terminated
- 59
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 4.9%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +9.7%
- Net unit change over 3 years
- 3-yr CAGR
- -1.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 143
- Closed (3yr)
- 0
- Terminated (3yr)
- 25
- Non-renewed (3yr)
- 1
- Transfers (3yr)
- 88
- Reacquired (3yr)
- 0
- Franchisor bought back
- Transfer rate
- 3.7%
- Owners selling to other franchisees
- Continuity rate
- 95.3%
- Units that stayed open
- Termination rate
- 4.9%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 615
- Loan volume
- $1.3B
- Median loan
- $2.0M
- 50th percentile
- Charge-off rate
- 4.6%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 97.2%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 136
- Defaults
- 14
- Typical loan rate
- 6.2%
- avg rate to borrowers
- Franchised industry avg
- 6.3%
- brand beats franchise avg ↓
- Jobs supported
- 5,740
- 0.5 per loan
- Lender concentration
- 5%
- top lender's share
Borrower mix: 25% went to startups / new businesses, 75% to established operators
Franchise vs independent — in hotels (except casino hotels) and motels, franchised businesses charge off at 6.3% vs 9.2% for independents — franchising is associated with 32% lower SBA default risk in this category.
Vintage analysis
Motel 6 charge-off rate by loan vintage
Top lenders financing Motel 6 franchisees
Showing 3 of 136 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Motel 6's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 27-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
What could kill this investment?
SBA loans charge off at 4.6% — 71% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
1 pending franchisee suit (MS & Sons, CA federal court); 1 prior franchisee suit settled (Park Property Management, UT); 1 prior class action (MALDEF/Arizona ICE guest data, $10M settlement); 1 government action (Washington State ICE guest data, $12M settlement); 1 collection action against former franchisee (Aesha LLC, TX 2024)
Largest disclosed settlement: $12,000,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · JLK Rosenberger, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Audited statements of income for G6 Hospitality Franchising LLC (in thousands). FY2024 total revenues $72,131K comprise royalty fees $63,057K, franchise fees $2,663K, and other franchise income $6,411K. Item 8 states exact FY2024 total revenues of $72,130,422. FY2023 total revenues $70,816K; FY2022 $76,007K. Net income $47,008K (2024).
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 85 / 100 verdict
- 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
- 06MEDHigh 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
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 15 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 7 |
| Mandatory arbitration | No |
| Arbitration location | Dallas, Texas |
| Jury trial waiver | Yes |
| Governing law | TX |
| Litigation count | 5 |
View Item 3 litigation summary
1 pending franchisee suit (MS & Sons, CA federal court); 1 prior franchisee suit settled (Park Property Management, UT); 1 prior class action (MALDEF/Arizona ICE guest data, $10M settlement); 1 government action (Washington State ICE guest data, $12M settlement); 1 collection action against former franchisee (Aesha LLC, TX 2024)
Items 10, 11
Training & Operations
- Classroom training
- 12 hrs
- On-the-job training
- 0 hrs
- Training location
- Dallas, Texas (or online/virtual)
- Ongoing training
- Required
- Time to open
- 9 mo
- From signing to launch
- Site selection
- Franchisee selects, franchisor approves
- Franchisor financing
- Not offered
- Item 10
- POS system
- Cloud-based PMS (designated vendor)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Cloud-based PMS (designated vendor)
Item 20 · call current owners
Franchisee Contacts
98 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Motel 6 · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Motel 6 franchise?
The total investment to open a Motel 6 franchise ranges from $195K – $1.5M, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Motel 6 franchise owners earn?
No average owner earnings figure for Motel 6 is on file. Item 19 — where a franchisor may disclose what its outlets earn — is voluntary under the FTC Franchise Rule, and we have not established what this brand's FDD says. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
What is Item 19 in the Motel 6 FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Motel 6 FDD and qualifies whose outlets they describe.
What is Motel 6's franchise failure rate?
Based on SBA 7(a) loan data, Motel 6 has a charge-off rate of 4.6% across 615 loans, meaning 4.6% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Motel 6 franchise locations are there?
As of their most recent FDD filing, Motel 6 has 1,195 total units in the United States, including 1,195 franchised units and 0 company-owned units. 48 new units were opened in the latest reporting year.
Is Motel 6 a good franchise to buy?
FranchiseVerdict rates Motel 6 as a A-grade franchise with a verdict score of 85 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.