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- 2022 Franchise 500 Rank
#91 Ranked #197 last year
- Initial investment
$223K - $7.5M
- Units as of 2021
1,232 5.4% over 3 years
Here’s what you need to know if you’re interested in opening a Motel 6 franchise.
Motel 6 is a hospitality enterprise famously known as a nice but affordable hotel. They have a whopping network of more than 1,100 economy lodging locations across the United States and Canada. This franchise is one of the most widely recognized brands in budget accommodations, with service experience of over 55 years. The brand was founded in 1962 and began franchising in 1996.
With annual marketing support in network radio, national television, digital advertising, public relations, email, search, and digital adverts, Motel 6 may leave the light on for you to best run your franchise.
Why You May Want to Start a Motel 6 Franchise
When you open a Motel 6, you may get a chance to cater to families and budget-minded travelers. You may also provide a selection of amenities including free calling rates, cable television, food serving, and kitchen-equipped suites.
This franchise contains both cheaper and more expensive options, which may help you to attract a wider range of customers. Hospitality typically means you invest in both land and structures. You might get added equity to your property and a continuous cash flow in operations, potentially bettering your franchise.
Opening a Motel 6 franchise may help you bring independent retailers together using a single trademark, business concept, and procedures. You may enjoy useful tools such as standardized procedures, a ready market, pooled advertising, group purchasing efficiencies, and widely recognized franchise awareness.
Their trademark is established, which may reduce the cost of creating and advertising your brand.
What Might Make Motel 6 a Good Choice?
Motel 6 has been ranked in Entrepreneur’s Franchise 500 many times over the past few decades. This ranking is based on an evaluation of more than 150 data points that include areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability.
To be part of the Motel 6 team, you should make sure you’re financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should be prepared for ongoing fees that will include advertising, royalty, and potential renewal fees.
Motel 6 typically provides quality service with a standardized financial and accounting system. This means that you might get a chance to deliver world-class services to your customers. Supervision and consultancy may be readily available. As a franchisee, you may receive guidance with sales assistance, marketing, and training to go along with their research and innovation.
How To Open a Motel 6 Franchise
Getting started with Motel 6 may be simple and easy. As a potential franchisee, you may want to know the costs involved. Request an information tool kit, which may contain the estimated cost and the startup requirements. These costs may include the royalties paid to the franchisor and professional fees, that include legal expenses, structure branding, furniture, and equipment.
You may also want to do some research on the success of other franchisees. You should also check to see if a Motel 6 franchise is available in your target geographic location. You may recruit management that can provide top-notch service. An efficient team might impact the bottom line of your franchise in general. Choose wisely based on experience, work ethic, and honesty.
Review the agreement with Motel 6, and don't be afraid to consult with an attorney specializing in franchises. Once you have your funding in order, you can sleep well knowing that your Motel 6 franchise is off to a good start!
About Motel 6
- Franchising Since
- 1996 (26 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees throughout the US.
This company is seeking new franchisees worldwide.
- # of Units
- 1,232 (as of 2021)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Motel 6 franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
- $20,000 - $30,000
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $222,550 - $7,547,718
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Veteran Incentives
- $1,500 off general manager training fee
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 15-20 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- Classroom Training
- 36.5 hours
- Additional Training
- Annual convention
- Ongoing Support
Purchasing Co-opsNewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail Marketing
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- # of employees required to run
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Franchise 500 Ranking History
Compare where Motel 6 landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where Motel 6 ranked on other franchise lists? Find out below.
Are you eager to see what else is out there? Browse more franchises that are similar to Motel 6.
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