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Motel 6

2014 Franchise 500
#57
At a Glance

Products & Services: Economy hotels

Number of Locations: 1,050

Total Investment: $2.1M - $2.9M

Founded: 1962

Began Franchising: 1996

About Motel 6

The first Motel 6, opened in Santa Barbara, California, in 1962, got its name from its room rates: $6 a night. Though its prices have necessarily risen over time, that original location is still open. The hotel chain was acquired by Accor in 1990, and began franchising in 1996.

Franchise Units

Year U.S. Canadian International Company Owned
2013 521 17 0 512
2012 483 17 0 521
2011 406 17 0 605
2010 359 12 0 632
Where Seeking Franchisees: Franchisor is seeking new franchise units in the U.S.,Canada, Central America, Mexico, South America.

Startup Costs, Ongoing Fees and Financing

Total Investment: $2,093,700 - $2,916,800
Franchise Fee: $25,000 - $35,000
Ongoing Royalty Fee: 5%
Term of Franchise Agreement: 10-15 years, renewable
Financial Requirements
Net Worth: $1,500,000
Liquid Cash Available: $300,000
Operations
10% of all franchisees own more than one unit. Number of employees needed to run franchised unit: 2 - 10. Absentee ownership of franchise is allowed. (70% of current franchisees are owner/operators).

How This Franchise Supports Franchisees

Training: Available at headquarters: 1 week. Available at franchisee's location. Annual convention
Ongoing Support: Newsletter, Meetings, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives
Marketing Support: Ad slicks, National media,

Franchise Ranking History

Franchise 500®: #57 (2014), #57 (2013), #55 (2012),
Fastest-Growing: #77 (2014), #29 (2013), #25 (2012),
America's Top Global: #70 (2013), #51 (2012),