How much does a Motel 6 franchise cost?
The 2026 Motel 6 Franchise Disclosure Document gives separate capital ranges for renovation, new construction, Motel 6 Classic renovation, and Motel 6/Studio 6 dual-brand projects. For a standard 100-room Motel 6, the disclosed Estimated Initial Investment is $195,259 to $1,600,000 for renovation or $6,251,265 to $8,900,000 for new construction. Both ranges exclude the cost of acquiring the land or existing motel.
These are the standard 100-room ranges in the March 5, 2026 FDD. A Motel 6 Classic renovation and a 50/50 Motel 6/Studio 6 dual-brand project have different ranges, and every disclosed total excludes property acquisition. Source: 2026 Motel 6 FDD, Item 7, pp. 22–26.
Data basis. Legal franchisor: G6 Hospitality Franchising LLC. Document: 2026 Motel 6 Franchise Disclosure Document, issued March 5, 2026. Cost analysis uses Items 5–7 (FDD pp. 9–26), Item 10 (p. 31), cost-relevant provisions in Item 11 (pp. 31–40), and Item 17 (pp. 44–49). Formats covered: standard renovation, Motel 6 Classic renovation, standard new construction, dual-brand renovation, and dual-brand new construction. Information checked July 22, 2026.
The brand’s official U.S. franchise information and the Wisconsin active franchise registration list were also checked. No matching 2026 FDD was located on an official franchise-controlled website, so FDD citations in this article are unlinked Item/page references.
The official franchise landing page still references a March 2024 FDD in some marketing footnotes. The financial figures in this article use the later March 5, 2026 FDD and do not import cost numbers from that older page.
Which Motel 6 investment range applies to the project?
The correct range depends on whether the property is a standard renovation, a Motel 6 Classic renovation, a standard new build, or a 50/50 Motel 6/Studio 6 dual-brand project. The 2026 FDD does not treat those formats as interchangeable.
The geometry uses the official low and high endpoints on a $0 to $9 million scale. Property acquisition is excluded from every range.
Interpretation: renovation ranges overlap at the low end, but Motel 6 Classic carries a materially higher floor. New construction begins above $6.25 million before land. Source: 2026 Motel 6 FDD, Item 7, pp. 22–26. Bar positions are derived only from the disclosed endpoints.
The 100-room format map
The FDD’s base table uses the current Prototype Gemini for a 100-room renovated or newly constructed Motel. Three footnotes create distinct cost contracts rather than cosmetic variations.
The dual-brand estimates assume a 50/50 split between Motel 6 rooms and Studio 6 rooms. The official G6 Hospitality brand page describes the two lodging brands, but the 2026 FDD controls the cost ranges shown here.
A $195,259 conversion floor is not a general “Motel 6 startup cost.” It belongs to the standard renovation assumptions for a 100-room property. A Classic renovation starts at $709,479, while standard new construction starts at $6,251,265 before land.
What is included in the standard Motel 6 initial investment?
Item 7 includes franchisor fees, planning, construction or renovation, FF&E, signage, technology equipment, opening inventory, and three months of Additional Funds. It does not estimate property acquisition, and insurance and utility deposits remain variable.
Site, planning, and building costs
| Item 7 category | Standard renovation | Standard new construction | Payment timing |
|---|---|---|---|
| Market Feasibility Study | $0–$10,500 | $0–$15,750 | As arranged with consultants |
| Property Ownership or Acquisition Costs | Not estimated | Not estimated | As agreed with third parties |
| Initial Fees Paid to Franchisor | $41,300 | $41,300 | On demand under Item 5 |
| Planning & Due Diligence | $0–$75,000 | $130,000–$290,000 | As arranged |
| Site and/or Civil Work | $0 | $84,000–$260,000 | As arranged |
| Construction Expenses | $0–$620,000 | $5,350,000–$6,800,000 | As arranged |
| Construction Contingency | $0–$31,000 | $270,000–$340,000 | As arranged |
| Opening Extension / Ancillary Trip Fees | Variable | Variable | Upon invoice if triggered |
FF&E, systems, opening supplies, and working capital
| Item 7 category | Standard renovation | Standard new construction | What it covers |
|---|---|---|---|
| Furniture, Fixtures & Equipment | $17,500–$430,000 | $490,000–$590,000 | Guest-room and common-area equipment, furniture, soft goods, flooring, and fixtures |
| FF&E Contingency | $0–$22,500 | $23,500–$29,000 | Materials and logistics volatility |
| Signage | $5,830–$60,500 | $21,725–$60,500 | Exterior, building, directional, and identity signage |
| WiFi Infrastructure | $0–$10,000 | $5,500–$10,000 | Access points, switches, antennas, cabling, and installation |
| Telephone System | $1,000–$2,000 | $2,000–$20,000 | Required auto-attendant, call transfer, and direct 911 capability |
| PMS and Credit Card Processing Equipment | $4,000–$9,000 | $4,000–$9,000 | Check-in devices, terminals, access hardware, and related software |
| Opening Inventory & Supplies | $26,766–$80,297 | $100,000–$190,000 | Linens, towels, forms, uniforms, cleaning supplies, tools, and operating equipment |
| Insurance and Utility Deposits | Varies | Varies | Carrier, risk, location, coverage, jurisdiction, and utility policies |
| Grand Opening Expense | $0–$5,000 | $0–$5,000 | Optional; no required spending level |
| Additional Funds — 3 months | $110,000–$175,000 | $110,000–$175,000 | Cash on hand for the initial operating phase |
Land or an existing motel is outside every total. The FDD also excludes FF&E freight and taxes, and assumes no swimming pool in new construction; a pool is disclosed as approximately $40,000 to $80,000 extra. The estimates rely partly on Dallas–Fort Worth construction and renovation experience, so a buyer’s local cost can be higher. Source: 2026 Motel 6 FDD, Item 7, pp. 24–26.
- Additional Funds
- $110,000–$175,000 of cash on hand for a 100-room Motel’s first three months. It is already included in Item 7, not added again.
- Owner compensation
- The FDD does not state that owner compensation is included in Additional Funds.
- Insurance
- No dollar range is given. A carrier may require some or all premiums before opening.
- Required suppliers
- Computer systems, certain soft goods, signage, casegoods, and other brand-specific supplies must come through the G6 e-procurement marketplace or Approved Suppliers. Item 8 estimates about 50% of new-construction FF&E is sourced from required suppliers.
Which fees are paid to Motel 6 before opening?
A standard 100-room project has $41,300 in fixed pre-opening fees paid to the franchisor or affiliates. The amount consists of the Application Fee, Site Evaluation Fee or PIP Fee, Initial Franchise Fee, Opening Package Fee, and Opening Assistance Fee. Variable charges can arise for extra trainees, additional trips, re-inspections, or a delayed opening.
Each segment is an exact 2026 Item 5 amount; the displayed bar proportions are derived from those amounts.
Interpretation: the Initial Franchise Fee is the largest fixed payment, but it is only one part of the $41,300 paid to the franchisor or affiliates. Source: 2026 Motel 6 FDD, Item 5, pp. 9–11; Item 7, pp. 22–24.
| Initial fee | Amount | When paid | Important condition |
|---|---|---|---|
| Application Fee | $5,000 | No later than signing the Franchise Agreement | Fully earned and non-refundable when paid |
| Site Evaluation Fee / PIP Fee | $1,950 | No later than signing | Site evaluation applies to new construction; PIP applies to conversions; limited refund if the application is rejected before the work is performed |
| Initial Franchise Fee | $25,000 | Upon signing | May be reduced for specified existing owners, multiple agreements, market conditions, market penetration, or Light The Way eligibility |
| Opening Package Fee | $4,750 | Upon invoice before opening | Includes one GM trainee, property photography, one email license, and opening-kit supplies; may be reasonably increased before opening |
| Opening Assistance Fee | $4,600 | Upon invoice before opening | Covers opening assistance, PMS installation/training, administrative support, and staff orientation; may be reasonably increased |
When does the cash leave the buyer?
The $5,000 Application Fee and $1,950 Site Evaluation Fee or PIP Fee are due no later than the date the Franchise Agreement is signed, although the franchisor may request them earlier after legal requirements are satisfied.
The $25,000 Initial Franchise Fee is payable when the Agreement is signed. A qualifying reduction must be confirmed in the transaction documents.
Third-party planning, construction or renovation, FF&E, signage, WiFi, telephone, permits, deposits, and inventory are paid as arranged or incurred. The FDD estimates 12–18 months from signing to opening for a new build and 3–9 months for a conversion.
Item 11 says the franchisee must arrange and pay vendors for the Computer System and Software configuration and pay the Opening Assistance Fee.
The Opening Package Fee and Opening Assistance Fee are invoiced before opening. The buyer should also have the disclosed $110,000–$175,000 of Additional Funds available for the initial three-month operating phase.
Payable on demand when more than one person attends the initial General Manager Training.
Triggered by additional post-opening visits related to opening assistance or phased PIP work.
Triggered when incomplete information, missed milestones, or premature notice of opening readiness requires another inspection.
Triggered when the Motel does not open by the required date; the amount depends on project status, communication, and cooperation.
The 2026 FDD says LIGHT THE WAY-related reductions are discretionary and may affect the Franchise Fee, Opening Package Fee, or one additional training attendee; it does not promise a universal discount. Source: 2026 Motel 6 FDD, Item 5, pp. 9–12.
Which Motel 6 fees continue after opening?
The recurring core is a 5% Royalty Fee, a current 3% Program Fee, and a current 1% Reservation Fee, all calculated on Gross Room Revenues and invoiced monthly. Technology, training, distribution, conference, and transaction-based charges sit outside those three percentages.
- Gross Room Revenues
- Gross receipts attributable to or payable for rental of Authorized Guest Rooms, whether collected or uncollected, with stated exclusions for gratuities and collected taxes or fees. The base is not reduced for operating expenses, credit-card commissions, bad debt, taxes, or refunds.
- Royalty Fee
- 5% of Gross Room Revenues, monthly upon invoice.
- Program Fee
- Currently 3% of Gross Room Revenues. It may rise by no more than 0.5 percentage points in any 12-month period and may not exceed 5.5% during the Agreement term.
- Reservation Fee
- Currently 1% of Gross Room Revenues. It may rise by no more than 0.5 percentage points in any 12-month period and may not exceed 2% during the Agreement term.
Technology and required-system charges
| Fee | Current amount | Basis and timing | Status |
|---|---|---|---|
| IT Services Fee | $400/month + $4 per Authorized Guest Room/month | Begins first day of first month after opening | Required |
| PMS Software Fee | $4 per Authorized Guest Room/month | Monthly in arrears | Required |
| Online Subscription Fee — Training | $800–$1,200/year | Annual invoice | Required online training access |
| Portal Access Fee | $3–$5 per user/month | Monthly if implemented | Franchisor may elect to charge |
| Direct Connect / Channel Fee | $1.50–$2.50 per reservation | Monthly | Triggered by qualifying direct-connect bookings |
| Guest Survey Fee | $40/month | Monthly invoice | Required platform charge |
| National Sales RFP Tool Fee | $199/year | Annual | Required participation |
Booking, sales, and optional service charges
| Fee or pass-through | Current amount | Trigger | Payment basis |
|---|---|---|---|
| Booking Fees and Travel Agency Commissions | Up to 20% | Reservations through participating agencies | Total room rate and other commissionable charges |
| CorporatePlus@6 Processing Fee | 4% | CorporatePlus@6 direct-billed business | CorporatePlus@6 room revenue and related taxes |
| Auto-Attendant Call Transfer Program Fee | 3.5%, capped at $6.95/call | Consumed reservation revenue from transferred calls | Monthly invoice |
| Group Reservation Fee | $25–$250 | Completed group reservations of 10+ room nights if the fee is activated | Based on consumed gross room revenue |
| Sales360 Program Fee | $1,200/month | Optional enrollment | Six-month minimum commitment disclosed in Item 11 |
| Revenue Management for Hire | $499–$1,999/month | Optional Basic, Advanced, or Premier service | Six-month minimum commitment |
| Motel-specific PPP / Microsite | $299 setup + $499/year | Optional property-specific page | Additional photos, translation, and services may add $99–$999 or $25/hour |
Conference and training charges
| Fee | Amount | When it applies |
|---|---|---|
| Annual Conference Fee | $1,850–$5,000 per Motel | One attendee per Motel; travel and related expenses are additional |
| Additional Training | $1,500–$3,500 per person | Optional or required refresher/default training; travel or trainer travel is additional |
| Replacement General Manager Training | $1,500 per attendee | New GM after opening must complete training within two months |
| Additional GM Training Attendee | $750 per person | Additional person attending replacement GM training at the same time |
The 5%, 3%, and 1% charges share the same Gross Room Revenues denominator, but technology and transaction fees use different bases: room count, users, reservations, calls, months, or annual invoices. They should not be collapsed into one unsupported “all-in royalty rate.”
Item 6 allows annual inflation adjustments to fixed dollar amounts using the U.S. Consumer Price Index for All Urban Consumers. The BLS CPI-U overview explains the referenced index. Source for fee terms: 2026 Motel 6 FDD, Item 6, pp. 12–22.
Which Motel 6 costs arise only after a trigger?
Transfers, renewals, property-improvement work, compliance failures, payment problems, audits, supplier substitutions, and early termination can create substantial additional obligations. These are not part of the ordinary monthly royalty calculation, but they belong in long-term capital planning.
Transfer, renewal, and property-improvement charges
| Event fee | Current amount | Timing or condition |
|---|---|---|
| Transfer Application Fee | $5,000 | No later than signing transfer documents |
| Transfer Franchise Fee | $12,500 | No later than 10 days before closing; generally 50% of the then-current Initial Franchise Fee |
| Renewal Application Fee | $5,000 | No later than signing the Renewal Agreement |
| Renewal Franchise Fee | $12,500 | For a 10-year renewal term; generally 50% of the then-current Initial Franchise Fee |
| Additional Fee for Extended Term | Up to $12,500 | Can bring transfer or renewal fees up to the then-current new-franchise fee |
| Property Improvement Plan Fee | $1,950 | Transfer, renewal, or required periodic renovation |
| Transfer / Renewal Package | Up to $4,600 | Due within 10 days after transfer closing or renewal date |
| On-Site Transfer / Renewal Assistance | Up to $4,750 | Upon invoice; may be adjusted for staffing and service scope |
| Additional GM / Ancillary Trip | $750 / $900 | Extra attendee or additional round trip |
Renewal also requires payment of monetary obligations, training, acceptance of a Property Improvement Plan, and execution of the then-current franchise agreement. A conversion term is 15 years and a new-build term is 20 years; the disclosed renewal period is 10 years. Source: 2026 Motel 6 FDD, Items 6 and 17, pp. 20–22 and 44–48.
Compliance, payment, and special-request triggers
$250 Late Fee per occurrence; interest at the lesser of 18% per year or the legal maximum; $50 Declined Payment Fee; and reimbursement of alternate payment or invoice-processing costs.
$1,000–$5,000 per quality intervention; $1,000–$5,000 per insurance failure or actual procurement cost; $3,500–$5,000 per audit or re-audit plus amounts owed when the disclosed conditions are met.
$1,000–$10,000 to evaluate a proposed vendor, product, or service when the Standards specify a required source.
$1,000–$2,500 for an expedited document and $1,000–$1,500 for a Comfort Letter request, depending on complexity and timing.
$124 Customer Care Research Response Fee plus expenses and guest compensation; $50 or $124 per Negative Experience Contact when the CRN threshold is not met.
Up to $2,500 as a condition to reconnect a Motel disconnected from the Reservation System due to default.
$10,000 when the franchisee proposes a public offering or private placement requiring franchisor review.
Default and termination exposure
| Obligation | Disclosed formula or amount | Trigger |
|---|---|---|
| Liquidated Damages for Early Termination | Greater of $2,000 per Authorized Guest Room or the prior 12-month average monthly Royalty, Program, and Reservation Fees multiplied by 24 | Agreement ends early due to franchisee default, including failure to open |
| Lost Future Profits | Gross Operating Revenue minus Operating Expenses, plus applicable taxes, multiplied by months remaining | Specified loss of the right to operate under the marks and system |
| Opening Without Permission | $50 per Authorized Guest Room per day | Rooms are rented before written authorization to open |
| Trademark / De-Identification Fee | $50 per Authorized Guest Room per day plus signage-removal costs | Failure to de-identify after termination |
| Dispute Costs and Indemnification | Reasonable attorneys’ fees, court costs, expenses, and covered losses | Prevailing-party and indemnification provisions |
Before assuming an existing Motel 6 can be transferred at the purchase price alone, obtain the transfer PIP, current Standards, required training scope, and written fee schedule. Item 17 makes system-conformance work a condition of transfer approval.
Does Motel 6 disclose a liquid-capital requirement or financing?
The 2026 FDD does not publish a minimum Liquid Capital or Net Worth threshold, and Item 10 says the franchisor does not offer direct financing. G6 Hospitality Franchising LLC also states that it will not guarantee a loan or lease and does not receive placement payments from financing sources.
The Estimated Initial Investment is not a disclosed cash-equity requirement. The $110,000–$175,000 Additional Funds line is cash on hand for three months, but the FDD does not state the borrower equity, lender reserve, Liquid Capital, Net Worth, or Non-Borrowed Funds needed for approval.
The official franchise application asks prospects to select an intended investment band, but it does not publish a qualifying minimum. Project-specific funding expectations should therefore be confirmed with the official G6 Hospitality development team and the buyer’s lender. Financing approval is separate from franchise approval.
What should a buyer verify before setting a Motel 6 budget?
Start with the exact project format and property, then reconcile the FDD range to the site-specific PIP, acquisition contract, construction plan, supplier quotes, and financing terms. The most important unresolved amount is often outside Item 7: the cost of the land or existing motel.
- Confirm the format in writing. Standard renovation, Motel 6 Classic renovation, standard new construction, and dual-brand projects have separate Item 7 ranges.
- Add property acquisition separately. Item 7 excludes land and the purchase price of an existing motel.
- Obtain the current PIP and approved plans. Renovation scope, safety upgrades, local codes, and market conditions drive the construction range.
- Separate fixed fees from variable triggers. The $41,300 fixed total does not include extension, re-inspection, extra trips, extra trainees, or later compliance charges.
- Do not double-count Additional Funds. The $110,000–$175,000 three-month cash line is already inside the disclosed total.
- Model each ongoing fee on its stated basis. Gross Room Revenues, room count, users, reservations, calls, and annual invoices are different denominators.
- Confirm fee increases and incentives in the final agreements. Fixed amounts may be CPI-adjusted, some service fees may change, and Light The Way reductions are discretionary.
- Use the current disclosure timeline. The FTC requires delivery of the FDD at least 14 calendar days before signing a binding agreement or making a covered payment.
The capital decision is therefore format-specific: a standard 100-room renovation is disclosed at $195,259–$1,600,000, a Motel 6 Classic renovation at $709,479–$2,145,596, and standard new construction at $6,251,265–$8,900,000, all before property acquisition. The buyer must then layer in financing terms, local project costs, variable Item 6 triggers, and any transfer, renewal, or Property Improvement Plan obligations without converting the FDD range into an unsupported “typical” budget.