Studio 6Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Studio 6 franchise requires a total initial investment of $197K – $9.2M, including a $25K franchise fee and an ongoing 5.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 6.2% charge-off rate across 66 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $197K – $9.2M
- 11th pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 5.0%
- 4th pct Lodging
- Units
- 240
- 42nd pct Lodging
- SBA default
- 6.2%
- system-wide median varies by category
Quick verdict · Lodging · color = vs category peers
Green = >15% above Lodging avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
The system grew 28% year-over-year. Fast growth means demand, but can strain support.
11 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $197K – $9.2M including a $25K franchise fee, 5.0% ongoing royalty.
- Item 19 discloses "Average Occupancy Rate, Average Daily Rate, Average RevPAR" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict A (Top Quintile) with a risk score of 35/100. 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, 2010–2024).
- 11 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- G6 Hospitality Franchising LLC
- Parent company
- OYO Hotels Inc.
- Ultimate parent
- Oravel Stays Limited
- Incorporated in
- DE
- HQ
- 2633 McKinney Avenue, Suite 130-524, Dallas, Texas 75204
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $64.2M
- vs $76.0M 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).
Overview
About
Studio 6 franchisees operate extended-stay hotel properties, managing guest check-ins, housekeeping, maintenance, and front-desk operations. Day-to-day responsibilities include occupancy management, revenue optimization through room pricing, staff management, and compliance with brand standards. Franchisees bear full operational and liability risk while paying 5% of gross room revenues as royalties.
- CEO
- Gautum Swaroop
- Headquarters
- TX
- Founded
- 2005
- FDD year
- 2024
- States available
- 33
FDD Item 7 · 2024 filing · 20 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 | — | — | |
| Re-visitation or Re-inspection Review Fee | — | — | |
| Architectural, Design Fees (plans); Environmental Assessments, Research/Testing/Abatement/Permits, Impact and Other Fees | $0 | $270K | |
| Site and/or Civil work | $0 | $250K | |
| Construction Expenses | $0 | $6.8M | |
| Construction Contingency | $0 | $342K | |
| Furniture, Fixtures & Equipment (FF&E) | $17K | $926K | |
| FF&E Contingency | $0 | $46K | |
| Signage | $5K | $61K | |
| WIFI Infrastructure | $0 | $10K | |
| Telephone System | $700 | $10K | |
| PMS and Credit Card Processing Equipment | $4K | $5K | |
| Opening Inventory & Supplies | $29K | $190K | |
| Insurance | — | — | |
| Utility Deposits | — | — | |
| Grand Opening Expense | $0 | $5K | |
| Additional Funds for Initial Phase (3 months) | $100K | $160K | |
| Total initial investment | $197K | $9.2M |
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
- $197K – $9.2M
- Better than avg vs category
- Liquid capital req'd
- $100K – $160K
- Better than avg vs category
- Franchise fee
- $25K – $25K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Room Revenues · 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 |
| Transfer fee | $13K |
| Renewal fee | $13K |
| Inventory (initial) | $29K – $190K |
| Total fee load | 8.0% of rev |
Financial Performance
This brand's FDD disclosed "Average Occupancy Rate, Average Daily Rate, Average RevPAR" in Item 19 rather than annual gross sales. This metric cannot be directly compared across brands, so we omit it from rankings.
vs Lodging averages
How Studio 6 Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 240
- Opened
- 61
- Last reporting year
- Closed
- 9
- Turnover rate
- 3.8%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +27.7%
- Net unit change last year
- 3-yr CAGR
- +40.4%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 29
- Closed (3yr)
- 0
- Terminated (3yr)
- 13
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 5
- Reacquired (3yr)
- 0
- Franchisor bought back
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).
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%
- 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)
- 96.0%
- 5-yr charge-off
- 9.1%
- Loans approved 2021+
- Active lenders
- 30
- Defaults
- 2
Vintage analysis
Studio 6 charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Studio 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 14 states
- Startup risk premium and job creation velocity
- 13-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Studio 6 presents HIGH RISK due to undisclosed unit economics, active litigation including civil rights violations, franchisor collection actions, and lack of going concern status despite aggressive growth.
Litigation (Item 3)
5 case reference(s): 0 pending, 5 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 35 / 100 rating
- 01HIGHActive litigation involving breach of contract, civil rights violations, and immigration data disclosure issues creates legal and reputational risk
- 02MEDNo Item 19 financial disclosure (Avg Revenue and Net Income not disclosed) prevents accurate ROI analysis and suggests weak unit economics
- 03MINORFranchisor collection actions indicate cash flow problems and potential non-compliance with franchise obligations
- 04HIGHGoing Concern status is FALSE, indicating potential financial viability concerns at corporate level
- 05MINORExtremely wide investment range ($197K–$9.2M) with no average revenue/profit data makes unit performance assessment impossible
- 06MINORHigh unit growth (27.7% YoY) may indicate aggressive recruitment masking underlying profitability issues rather than organic health
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Market Area |
| Protected territory | Yes |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 11 |
View Item 3 litigation summary
5 case reference(s): 0 pending, 5 settled.
Items 10, 11
Training & Operations
- Classroom training
- 12 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- 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
FDD download
Studio 6 · FDD (2024) PDF
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 $197K – $9.2M, 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?
Studio 6 does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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 240 total units in the United States, including 171 franchised units and 0 company-owned units. 61 new units were opened in the latest reporting year.
Is Studio 6 a good franchise to buy?
FranchiseVerdict rates Studio 6 as a A-grade franchise with a risk score of 35 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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.
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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.