Motel 6 is a well-known budget hotel business with over 1250 sites worldwide. It has been franchising since 1996, with a charge of $25,000 to $35,000. With a limited variety of services, such as cable TV, free local calling, & complimentary coffee in the morning, this brand appeals mostly to families and other budget-conscious tourists. It also has an extended-stay subsidiary, Studio 6 that caters to business visitors and offers larger suites with kitchenettes. Accor North America’s flagship cheap brand is Motel 6.

Motel 6 is a privately held American hospitality firm that operates a chain of inexpensive motels across the United States and Canada. The Carrollton, Texas-based hospitality corporation was created in 1962. Motel 6 offers franchise options as well. The corporation owns and runs 882 franchisees in the United States and 26 franchisees outside of 2018.

Motel 6 hotel Franchise Cost

Fixed pre-opening fees of $33,850 are included with the franchise and paid to the franchisor or their Affiliates. The hotel sector is interesting and provides opportunities to meet people from all around the world. If you’ve ever considered purchasing a hotel franchise but were not sure if you’d make enough money to justify the investment, you’re in luck! You’ll learn how much money hotel franchisees make on average per year, as well as the numerous components that contribute to that figure.

Motel 6 hotel Franchise Total Cost

The franchise fee for Motel 6 is up to $35,000, and the total initial investment ranges from $2,617,700 to $3,868,600. A freshly constructed 100 room Motel 6 Motel (excluding land acquisition costs) will require a total investment of $6,891,850 to $8,823,850, while a conversion 100 room Motel 6 Motel would require a total expenditure of $206,850 to $2,106,050.

Motel 6 hotel Franchise Fees

The first financial investment needed to open a Motel 6 franchise is $50,000. The Initial Investment Range is $2,617,700 – $3,868,600, and the Franchise Fee is $35,000, the Royalty Fee is 6% of Gross Sales, and the Due Date for this fee is every Friday for the prior Reporting Period via electronic funds transfer. The Royalty Fee for the renewal term shall be determined by the terms of the Franchise Agreement entered for that renewing term. However, any revenues earned through the supply of any solutions and/or the sale of any goods, whether by the franchise owner or a third-party supplier, that connect to or derive from the Franchised Business are included in the Franchise fees.

Motel 6 hotel Franchise Expenses

The initial franchise cost is from $25,000 to $35,000; the overall investment ranges from $2,389,600 to $3,454,000, working capital is from $55,000 to $70,000, the ongoing royalty cost is 5%, as well as the Ad Royalty Fee, is 3.5 percent, among other charges.

Motel 6 hotel Franchise Owner Salary

The compensation range for Motel 6 hotel franchise owners is usually reported to be $40,000 to $60,000 every year. However, the figure was obtained from such a Business Week story from 2009, and it doesn’t appear to have been changed since then. To use an inflation calculator, we calculated that hotel chain owners might end up earning between $49,000 and $74,000 every year in 2021 dollars. To put it in context, the American middle class comprises those who earn from $48,500 & $145,500 each year. The amount of money needed to be classified as “middle class” is determined by the number of your family members and where you reside.

Motel 6 hotel Franchise Revenue

Accor, the Motel 6 & Sofitel brands owner firm, reported an increase in operating profit last year, citing stronger demand & lower debt. Motel 6 increased operating profit before taxation and one-time expenses by 39% to 438 million euros ($584 million), including currency effects. Following the spin-off of Accor’s Edenred business unit, net income fell sharply from 2010. This was due to a non-cash profit of 4.04 billion euros a year before. Motel 6, which manages or franchises upwards of 4,400 motels with 530,000 rooms, reported a 2.5 percent increase in revenue to 7.1 billion pounds ($8.13 billion) in 2011, with same-store sales up 5.2 percent at constant currency.

The effects of low Motel 6 sales were more than offset by the higher interest for the company’s luxury hotels and non-US budget operations. Accor’s upmarket and casual dining hotels saw a 5% increase in revenue, whereas its Etap & Ibis budget brands saw a 6.3 percent increase in sales. Motel 6’s same-store revenues increased by 4.3 percent, but revenue fell by 4.2 percent due to the sale of several of its hotels. In an attempt to reduce debts and fund Ibis hotel upgrades and a planned expansion in China, the business stated it would entertain offers for Motel 6.

Motel 6 hotel Franchise Application Process

In a typical franchise application form, you may expect to find – and be asked – the following:

  • Personal data in great detail, including all contact information as well as biographical & character information.
  • They would like to know whether you’ve ever operated a business, if you’ve ever been engaged in any type of litigation and arbitration and if you have any partners.
  • Location preferences will normally inquire about cities/territories you are engaged in, as well as any alternatives you might explore, as well as whether you’re willing to relocate.
  • Detailed job history like where you’ve worked, what you’ve done, how long you’ve been there, and the annual salary you’ve earned.
  • A candidate’s educational background and any other relevant training or experience can be considered.
  • Personal financial assertion along with your application, you must provide documentation of assets, net worth, liabilities, source of income, & total income.
  • Many franchisors will also want to know something you already understand about them, the franchise opportunities, and why you should be interested in becoming a franchisee. Then you can apply for a Motel 6 franchise.
  •         Can you buy a Motel 6 hotel Franchise?

If you wish to purchase a Motel 6 hotel franchise, you must meet the following guidelines:

  • Examine your financial documents to establish your net worth and how much money you have to spend in a hotel franchise.
  • Prequalify for a company franchise loan by meeting with a lender.
  • Make a list of your abilities, education, and work experience. Take note of how these apply to hotel franchise ownership, marketing, & operations.
  • Make a list of the kind of hotels you’re interested in and match your abilities and experience.
  • Investigate hotel franchise prospects on the Internet and in hotel trade periodicals.
  • Look at hotel franchise opportunities. If you own a hotel and would like to associate it with a hotel chain, look for brand identity franchise opportunities on the Internet.
  • Examine the many hotel franchise options. For information on individual franchises available for sale or franchise-branding possibilities, contact the hotel’s corporate management.
  • To get franchise catalogs, locate the relevant contact representatives on the hotel franchise sites and collect a phone number, fax number, street address, and zip code.
  • For all the franchise selections, get a franchise company survey. Typically, these surveys require you to provide contact information, data about your prospective hotel site, and details about your ideal hotel operation.
  • Franchised hotels that are currently for sale must additionally comply with any governmentally real estate disclosure requirements.
  • To review the material given as part of a disclosure material, hire a great person with expertise in hotel franchising.
  • To draft a franchise agreement, meet with the hotel’s business representative. The contract should fit your needs in terms of hotel kind and region. If you already own a hotel, create a mutually agreed franchise branding agreement.
  • Consult a legal specialist with experience in hotel franchise operations to review the franchise agreement & disclosure or branding contract.
  • With the help of a loan broker or a banking agent, finish your franchise loan application. For loan approval, present the franchise agreement & disclosure to the bank.
  •         How much does a Motel 6 hotel Franchise owner make?

Hotel owners make between $40,000 and $50,000 each year, or even more than that, depending on where their hotel is located. Hotel owners may make more money in a popular tourist area or a region where many people come. It is entirely dependent on the occupancy percentage; tomorrow, you will have a 100% occupancy rate. If you have 100 rooms in your hotel, you may easily make a million dollars a month.

  •         How much does the average Motel 6 hotel Franchise make?

Several formulas are used to determine the assessment of continuous franchise fees. Royalty fees are usually determined as a percentage of room income. On the other hand, a few hotel owners levy a royalty fee expressed as a percentage of food and beverage revenue. The royalty charge to hotel revenue ratio ranged from 1.0 percent to 7.0 percent in 2012. Marketing and advertising costs are normally determined as a percentage of hotel revenue and between 1.0 and 5.0 percent. Reservation charges are sometimes calculated using a combination of a percentage of hotel income (ranging between 0.0 % to 7.0 percent) and/or a monthly dollar value per apartment unit (ranging from $0.14 to $8.65), the source of the booking, for every reservation.

  •         Can I open a Motel 6 hotel Franchise?

Yes, you can open a Motel 6 hotel franchise whenever you wish. First, you need to select a proper location, select the promotion method, run the store, a little franchise or appropriate investments, entrepreneurship experience, and legal documentation for the legal papers. You’re also ready to start a franchise at any time.

  •         Motel 6 hotel Franchise net worth requirements

A $100,000 investment is set to enter a unit. According to the franchise, new franchisees are expected to have a net worth of at least $150,000. The franchisor receives a 5% royalty from Motel 6 franchisees. The initial deposit that Motel 6 asks its owners to make in a new place is $2,617,700

  •         How much money do you need to start a Motel 6 hotel Franchise? 

The overall value necessary to open a franchise ranges from $3,868,600 to $3,868,600. A franchise fee of $25,000 is required to start a Motel 6. Motel 6 first opened its doors in 1962. By 1996, they had become a franchised system. There are presently 1251 Motel 6 locations open for business.

  •         Motel 6 hotel Franchise owner income

To determine how much money a Motel 6 franchise owner can make, consider criteria such as area, location, and other criteria. But on the other hand, as a business owner, you want to maintain a good level of service while keeping costs low. Rent/mortgage, inventory supplies, staffing/family, utilities, administrative expenditures, and so on, as with any other franchise. The cost of a month can vary depending on the area and seasons. The majority of franchise start-up costs are fixed, and they will cover the majority of the early operational costs, such as signage, decoration, furniture, and upgrades.

  •         Motel 6 hotel Franchise profit margin

Accor, the owner firm of the Motel 6 and Sofitel brands, reported an increase in operating profit last year, citing stronger demand & lower debt. Accor increased total revenue before taxes & one-time expenses by 39% to 438 million euros ($584 million), discounting currency effects. Following the spin-off of Accor’s Edenred business unit, net income fell sharply from 2010. This was due to a non-cash profit of 4.04 billion euros a year earlier. Accor, which manages or franchises more than 4,400 hotels with such a total of 530,000 rooms, reported a 2.5 percent increase in profit to 6.1 billion euros ($8.13 billion) in 2012, with same-store sales up 5.2 percent at revenue growth.

  •         Motel 6 hotel Franchise requirements

To buy Motel 6 Franchise, you will be required to present your financial records, particularly federal tax documents, financial records, and evidence of income.

  •         How much is a Motel 6 hotel Franchise fee?

The franchise has been in business for almost 55 years and is one of the more active national advertising programs. Target markets for Motel 6 are currently accessible for growth across the United States and certain hotel franchises around the world. The franchise cost for the new Motel 6 is $35,000. The initial cost is anything between $2,617,700 & $3,868,600.

  •         Motel 6 hotel Franchise USA

William Becker and Paul Greene, two local building builders, founded Motel 6 in Santa Barbara, California, in 1962. The partners devised a strategy for constructing low-cost motels. They settled on a $6 per night hotel charge (equal to $51 in 2020) to pay construction costs, land rentals, and housekeeping supplies, thus the name “Motel 6.”

  •         Motel 6 hotel Franchise value

The franchise value of a Motel 6 is up to $35,000, with a total initial investment of $2,617,700 to $3,868,600.

  •         Motel 6 hotel Franchise worth 

A Motel 6 franchise is anticipated to cost between $206,850 and $8,823,850 to open. The initial franchise cost is from $25,000 to $35,000, and it allows you the right to operate a business underneath the Motel 6 brand.

How is Cannabis Dispensary Franchise better than Motel 6 hotel Franchise?

Starting the cannabis dispensary franchise is similar to starting a regular franchise, with a few major compliance-related changes. You can’t export cannabis items across state lines because it’s prohibited on the federal level. This means that all products must be grown within the state’s borders. That’s a big contrast from a pizza chain, which uses the same products throughout the country.

To supply its franchisees, cannabis franchises must either have in-state grow operations or provide each stores the freedom to cultivate or find their local supplies. For cannabis franchises, the first investment is from $78,650 to $89,760, plus a $12,000 franchise fee; for legal cannabis dispensaries, the first investment is from $165,650 to $237,000, including a $60,000 franchise charge. These are anticipated costs based on averages.

Whereas the initial franchise cost for Motel 6 is from $25,000 to $35,000, the overall investment ranges from $2,389,600 to $3,454,000; working capital is from $55,000 to $70,000, the ongoing royalty cost is 5%, as well as the Ad Royalty Fee, is 3.5 percent, among other charges. So, it is your turn to decide which franchise you should have.

FAQ

What is the franchise fee of Motel 6 hotel?

– The franchise fee of a Motel 6 hotel is around $70000 in the USA, which is approx less than the other franchise.

What is the yearly revenue of the Motel 6 hotel franchise?

– The yearly revenue of Motel 6 hotel franchises, including the profit, is 9000 crores USD easily.

What is the salary of a Motel 6 hotel franchise owner?

The Motel 6 hotel franchise owner makes between $40,000 and $50,000 a year, but it also depends on where the hotel is located. Hotel owners may make more money in a popular tourist area or a region where many people come.

Conclusion

You can easily select the correct franchise business compared to other franchises like fast food and medical sectors. Experts will help you select the Cannabis dispensary franchise unit over several other franchises for doing well in the world of medical aspects and earning vast amounts simultaneously! So, before investing a huge franchise amount, know the profit margin & other things you need to know.

Frequently Asked Questions