Motel 6
Health Score
58 Our derived Health Score (1–100) = growth (30%) + fees (20%) + scale (20%) + transparency (15%) + data quality (15%) system_shrinkingnon_standard_revenue_modelno_gross_revenue_item19
Investment Range Total estimated initial investment from the FDD, including franchise fee, build-out, equipment, and working capital.
$195K–$8.2M
Franchise Fee One-time upfront fee paid to the franchisor for the right to operate under their brand.
$25,000
Royalty Ongoing fee paid to the franchisor, typically a percentage of gross revenue, paid weekly or monthly.
5%
Gross Room Revenues (GRR)
Total Units Total number of franchised and company-owned locations currently operating.
1,195
-0.7% growth
Financial Performance (Item 19)
Sample Size Number of franchise locations included in the financial performance data. Larger samples are more reliable.
1,107
Reporting period: 2024-01-01 to 2024-12-31
Unit Growth
| Year | Total Units | Opened | Closed |
|---|---|---|---|
| 2022 | 1,211 | — | — |
| 2023 | 1,208 | — | — |
| 2024 | 1,195 | — | — |
Other Ongoing Fees
| Fee | Amount | Frequency |
|---|---|---|
| Reservation Fee | $1% of Gross Room Revenues | monthly |
| IT Services Fee | $$300/month + $3.05 per Authorized Guest Room/month | monthly |
| PMS Software Fee | $$3.90 per Authorized Guest Room/month | monthly |
| Annual Conference Fee | $$1,850–$5,000 per motel | annually |
| Transfer Fee (Application + Franchise) | $$5,000 application + $12,500 franchise fee = $17,500 total | upon transfer |
| Renewal Fee (Application + Franchise) | $$5,000 application + $12,500 franchise fee = $17,500 total | upon renewal |
Quick Facts
Fee Burden Combined percentage of gross revenue paid in ongoing fees (royalty + advertising/marketing fund).
9%
royalty + ad fund
Franchised Number of locations owned by independent franchisees, not the franchisor.
1,195
Company-Owned Locations owned directly by the franchisor. High ratios can signal corporate confidence — or difficulty selling franchises.
0
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Source: FDD filed in MN, 2025. Extracted 2026-04-05.
Frequently Asked Questions
- Is Motel 6 a franchise?
- Yes, Motel 6 is a franchise with 1,195 locations worldwide. Prospective owners purchase the right to operate under the Motel 6 brand and system by signing a franchise agreement and paying a franchise fee. The full terms are disclosed in the Franchise Disclosure Document (FDD).
- How much does it cost to open a Motel 6 franchise?
- The total initial investment for a Motel 6 franchise ranges from $195K to $8.2M, according to the 2025 FDD. This includes the franchise fee, build-out, equipment, and initial working capital.
- Does Motel 6 disclose franchise earnings?
- Motel 6 does not include an Item 19 financial performance representation in their FDD, which means they do not publicly disclose revenue or earnings data for franchisees. Prospective buyers should request this information directly from existing franchisees listed in Item 20.
- How many Motel 6 franchise locations are there?
- As of the 2025 FDD, Motel 6 has 1,195 total units (-0.7% growth rate).