Studio 6 Franchise Cost, Revenue & Review 2026
- Investment
- $200K – $2.1M
- Disclosed sales
- partial, no system average
- SBA charge-off
- 6.2%
- on 66 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Studio 6 is a premium-economy extended-stay motel franchise under the G6 Hospitality family. Franchisees own and operate the properties, managing front desk, housekeeping, and revenue under brand standards.
FranchiseVerdict summary · 2026
A Studio 6 franchise requires a total initial investment of $200K – $2.1M, including a $25K franchise fee and an ongoing 5.5% royalty[2]. The 2026 FDD on file does not yield a unit-revenue figure we can publish. SBA 7(a) loans show a 6.2% charge-off rate across 66 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored4 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $200K – $2.1M
- 9th pct Lodging
- Avg gross sales
- N/A
- Projection
- Royalty
- 5.5%
- 39th pct Lodging
- Units
- 300
- 58th pct Lodging
- SBA charge-off
- 6.2%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging median · 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 $200K – $2.1M including a $25K franchise fee, 5.5% ongoing royalty.
- RETURNSItem 19 reports occupancy, ADR and RevPAR rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict B (Above average), verdict score 46/100 (higher is better). SBA loan charge-off rate of 6.2% across 66 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +27 franchised outlets in the latest year (0 opened, 0 closed) (Item 20).
- GROWTHSystem growing at 41.1% CAGR over 3 years with 300 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- G6 Hospitality Franchising LLC
- Parent company
- G6 Hospitality LLC
- FDD Item 1, page 7 of the 2026 FDD
- Ultimate parent
- Oravel Stays Limited
- FDD Item 1, page 7 of the 2026 FDD
- Predecessor
- Accor Franchising North America, LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Sonal Sinha
- Incorporated in
- Delaware
- HQ
- 6509 Windcrest Drive, Suite 100, Plano, Texas 75024
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $63.2M
- vs $72.1M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- in the US
- Accor Canada
Other brands the franchisor or its parent operates (Item 1).
Same owner · FDD Item 1, page 7
1 other brand on this site name Oravel Stays Limited as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Sonal Sinha
- Headquarters
- Texas
- Founded
- 2005
- FDD year
- 2026
- States available
- 33
Can you afford it, and what does the money buy?
Entry cost runs 87% below the typical lodging franchise.
Source: FDD 2026 · Items 5–7
The filing's Item 7 TOTAL row prints $200,000 to $2,150,000. Its own line items add to $201,600 to $2,374,800. The total is shown as the franchisor printed it; the lines are listed as printed. FILING ARITHMETIC DOES NOT FOOT. Headline $200,000-$2,150,000 is the printed RENOVATION total of Table 1 (Extended Stay Motel, pp.28-29, FDD pp.22-23; 100-room basis, whole-motel dollars; the 'Total Per Guest Room' row $2,000-$21,500 is a derived row, not a line).
Full Item 7 breakdown20 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Market Feasibility Study | $0 | $11K | |
| Property Ownership or Acquisition Costs | — | — | |
| Initial Fees Paid to Us | $41K | $41K | |
| Opening Extension Fee | — | — | |
| Re-visitation or Re-inspection Review Fee | — | — | |
| Planning & Due Diligence: Architectural, Design Fees (plans); Environmental Assessments, Research / Testing/Abatement/Permits, Impact and Other Fees | $0 | $75K | |
| Site and/or Civil work | — | — | |
| Construction Expenses | $0 | $850K | |
| Construction Contingency | $0 | $42K | |
| Furniture, Fixtures & Equipment (FF&E) | $20K | $900K | |
| FF&E Contingency | $0 | $45K | |
| Signage | $5K | $65K | |
| WIFI Infrastructure | $0 | $10K | |
| Telephone System | $1K | $2K | |
| PMS and Credit Card Processing Equipment | $4K | $9K | |
| Opening Inventory & Supplies | $30K | $120K | |
| Insurance | — | — | |
| Utility Deposits | — | — | |
| Grand Opening Expense | $0 | $5K | |
| Additional Funds for Initial Phase (3 months) | $100K | $200K | |
| Total initial investment | $202K | $2.4M |
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
- $200K – $2.1M
- Top 40% of category vs category
- Liquid capital req'd
- $100K – $200K
- Top 40% of category vs category
- Franchise fee
- $25K – $25K
- Top 40% of category vs category
- Royalty
- 5.5%
- 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 | 5.5% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $400 |
| Training fee | $6K |
| Transfer fee | $5K |
| Renewal fee | $5K |
| Inventory (initial) | $29K – $190K |
| 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 Studio 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 Studio 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
Item 19 reports occupancy, ADR and RevPAR rather than annual gross sales, so unit revenue is not directly comparable. We omit it from rankings.
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% (near the Lodging median).
Disclosure
Item 19 reports occupancy, ADR and RevPAR rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System expanding at 41.1% CAGR over 3 years across 300 units — operators are staying and new ones are joining.
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 medians
How Studio 6 Compares
Category median of published Lodging brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
The 2026 filing reports Studio 6 Suites separately, at 64 outlets in a second Item 20 table (printed p.57). The document does not combine it with the 236 Extended Stay Motels outlets shown here, so no systemwide total is stated.
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 300
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 4.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +41.1%
- Net unit change over 3 years
- 3-yr CAGR
- +41.1%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Projected new
- 0
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 26 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.
Available to sell in · Item 12
- California
- Hawaii
- Illinois
- Indiana
- Maryland
- Michigan
- Minnesota
- New York
- North Dakota
- Rhode Island
- South Dakota
- Virginia
- Washington
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
Where the owners are · Item 20 owner list
109 current owners across 26 states.
- CA 22
- GA 15
- FL 9
- LA 9
- AZ 6
- MS 5
- IL 4
- IN 4
- NC 4
- OK 4
- AL 3
- NM 3
- +14 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 66
- Loan volume
- $167.0M
- Median loan
- $2.8M
- 50th percentile
- Charge-off rate
- 6.2%
- on 66 loans · 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)
- 93.8%
- 5-yr charge-off
- 9.1%
- Loans approved 2021+
- Active lenders
- 30
- Defaults
- 2
- Typical loan rate
- 6.1%
- avg rate to borrowers
- Franchised industry avg
- 6.3%
- brand beats franchise avg ↓
- Jobs supported
- 485
- 0.4 per loan
- Lender concentration
- 6%
- top lender's share
Borrower mix: 42% went to startups / new businesses, 58% 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
Studio 6 charge-off rate by loan vintage
Top lenders financing Studio 6 franchisees
Showing 3 of 30 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Studio 6 from SBA 7(a) FOIA data.
- Principal loss rate
- 1.4%
- Avg SBA guarantee
- 77%
- Avg interest rate
- 6.11%
- Avg chargeoff amount
- $1.8M
- Lender concentration
- 6.4%
- Job velocity
- 0.4 per $100K
- Startup risk premium
- -12.5pp
- NAICS benchmark
- 7.6%
- NAICS 721110
- Jobs supported
- 485
Top SBA lendersTop lender holds 6% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Commonwealth Business Bank | 3 | $9.5M | 0.0% |
| 2 | Columbia Bank | 3 | $5.6M | 0.0% |
| 3 | Bank of Hope | 3 | $7.5M | 0.0% |
| 4 | Cadence Bank | 3 | $7.7M | 0.0% |
| 5 | Peoples Bank | 3 | $8.0M | 0.0% |
| 6 | Commercial Bank of California | 2 | $6.4M | 0.0% |
| 7 | Legence Bank | 2 | $3.2M | 0.0% |
| 8 | First Western SBLC, Inc | 2 | $3.4M | N/A |
| 9 | Pinnacle Bank | 2 | $2.7M | 0.0% |
| 10 | Wallis Bank | 2 | $5.7M | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 21 | 0 | 0.0% |
| CACalifornia | 7 | 0 | 0.0% |
| LALouisiana | 5 | 1 | 25.0% |
| MSMississippi | 4 | 0 | 0.0% |
| COColorado | 1 | 0 | 0.0% |
| CTConnecticut | 1 | 0 | 0.0% |
| FLFlorida | 1 | 0 | 0.0% |
| GAGeorgia | 1 | 0 | 0.0% |
| KYKentucky | 1 | 0 | -- |
| NCNorth Carolina | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 6.2% — 61% 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)
Subject: the franchisor is a named party (defendant).
Item 3 discloses 5 actions: (1) MS & Sons Hospitality v. G6 Hospitality LLC / G6 Hospitality Franchising LLC v. MS & Sons - cross-suits over termination for default, pending; (2) Azure Portfolio entities v. G6 Hospitality LLC and Accor Franchising North America - breach of franchise agreements and related claims, pending; (3) Park Property Management v. G6 Hospitality Franchising LLC - breach of contract/fraud claims, resolved in franchisor's favor through Utah Supreme Court; (4) MALDEF class action (Jane V. et al.) v. Motel 6 Operating, L.P. and G6 Hospitality LLC - alleged sharing of guest data with ICE, settled for $10,000,000 plus consent decree; (5) State of Washington v. Motel 6 Operating, L.P. and G6 Hospitality LLC - similar ICE data-sharing claims, settled for $12,000,000 plus consent decree.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Franchisor is G6 Hospitality Franchising LLC (Studio 6 Plus, a newly introduced brand with 0 outlets; OYO-owned as of Dec 2024). Item 21 states audited financial statements as of December 31, 2025 are attached in Exhibit H, but the actual Exhibit H statement pages (balance sheet, income statement, auditor's report) are NOT present in the provided text, so franchisor_net_worth, total_assets, total_liabilities, net_income, revenue_yr2, other_revenue, and auditor_name could not be extracted. The franchisor's total revenue is $63,210,041 is taken from Item 8's explicit citation of the franchisor's FY2025 audited total revenues. Item 19 contains no financial performance representation.
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
Score breakdown · what drove the 46 / 100 verdict
- 01MINOR10 suits normal for a 199-unit lodging system
- 02MINORStrong financials: $70.8M revenue, $46.7M net income, $33.4M net worth
- 03MINORNo bankruptcy or going-concern
- 04MEDAudited, Item 19 disclosed, 4.0% turnover
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 | 20 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory sizeℹ | case-by-case |
| 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 |
| Termination groundsℹ | 23 |
| Curable defaultsℹ | 8 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 5 |
View Item 3 litigation summary
Item 3 discloses 5 actions: (1) MS & Sons Hospitality v. G6 Hospitality LLC / G6 Hospitality Franchising LLC v. MS & Sons - cross-suits over termination for default, pending; (2) Azure Portfolio entities v. G6 Hospitality LLC and Accor Franchising North America - breach of franchise agreements and related claims, pending; (3) Park Property Management v. G6 Hospitality Franchising LLC - breach of contract/fraud claims, resolved in franchisor's favor through Utah Supreme Court; (4) MALDEF class action (Jane V. et al.) v. Motel 6 Operating, L.P. and G6 Hospitality LLC - alleged sharing of guest data with ICE, settled for $10,000,000 plus consent decree; (5) State of Washington v. Motel 6 Operating, L.P. and G6 Hospitality LLC - similar ICE data-sharing claims, settled for $12,000,000 plus consent decree.
Items 10, 11
Training & Operations
- Classroom training
- 12 hrs
- On-the-job training
- 0 hrs
- Training location
- Plano, Texas (GM Training); on-site at franchisee's Motel (On-Site Training, ~2.5 days)
- Ongoing training
- Required
- Time to open
- 18 mo
- From signing to launch
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
- POS system
- HotelKey
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: HotelKey
Item 20 · call current owners
Franchisee Contacts
109 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Studio 6 franchise?
The total investment to open a Studio 6 franchise ranges from $200K – $2.1M, 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 Studio 6 franchise owners earn?
Item 19 of the Studio 6 FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Studio 6?
Studio 6 is franchised by G6 Hospitality Franchising LLC. Its parent company is G6 Hospitality LLC. The ultimate parent named in the FDD is Oravel Stays Limited. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Studio 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 Studio 6 FDD and qualifies whose outlets they describe.
What is Studio 6's franchise failure rate?
Based on SBA 7(a) loan data, Studio 6 has a charge-off rate of 6.2% across 66 loans, meaning 6.2% 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 Studio 6 franchise locations are there?
As of their most recent FDD filing, Studio 6 has 300 total units in the United States, including 300 franchised units and 0 company-owned units. The 2026 filing reports Studio 6 Suites separately, at 64 outlets in a second Item 20 table (printed p.57). The document does not combine it with the 236 Extended Stay Motels outlets shown here, so no systemwide total is stated.
Is Studio 6 a good franchise to buy?
FranchiseVerdict rates Studio 6 as a B-grade franchise with a verdict score of 46 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.