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FranchiseVerdict

How Much Does a Motel 6 Franchise Cost?

Data from the 2025 Franchise Disclosure Document

Investment Summary

Total Investment

$195K – $8.2M

Franchise Fee

$25K

Royalty

5.0%

Ad Fund

3.0%

Cost Breakdown

Initial Franchise Fee

The initial franchise fee for Motel 6 is $25K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.

Total Investment Range

Opening a Motel 6 franchise requires a total investment of $195K – $8.2M. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.

Working capital alone ranges from $100K to $160K.

Ongoing Costs

Beyond the initial investment, Motel 6 franchisees pay ongoing fees. The royalty fee is 5.0% of gross sales (Gross Room Revenues). The advertising or brand fund contribution is 3.0% of gross sales. There is also a technology fee of $300.

Net Worth & Liquid Capital Requirements

Motel 6 requires working capital of $100K – $160K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.

What Can You Earn?

Motel 6 does not disclose earnings data in Item 19 of its Franchise Disclosure Document. Not all franchisors choose to publish financial performance representations, though this is a data point many prospective franchisees consider important.

How Do Banks View Motel 6?

SBA Loans Issued

466

Default Rate

2.8%

The SBA (Small Business Administration) tracks loan performance for franchise brands. Motel 6 has 466 SBA-backed loans on record. The default rate is 2.8%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.

Next Steps

Talk to current Motel 6 franchise owners

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