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Motel 6

Economy lodging

Background

Founded: 1962 Franchising since: 1996
NULL
4001 International Pkwy.
Carrollton, Texas 75007
Phone:
(888)842-2942

Franchisee Association
Franchisee Advisory Council

Franchisor is a privately-held company with 500 employee(s); 29 employee(s) in franchise department.

Franchise Growth
Year U.S. Franchises Canadian Franchises Foreign Franchises Company Owned
2008 225 7 0 674
2007 197 5 0 676
2006 189 0 5 675
2005 167 0 0 681

Where Seeking Franchisees
In the U.S. Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, Montana, Nebraska, North carolina, North dakota, New hampshire, New jersey, New mexico, Nevada, New york, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode island, South carolina, South dakota, Tennessee, Texas, United states, Utah, Virginia, Vermont, Washington, Wisconsin, West virginia, Wyoming
Outside the U.S.: Canada

Exclusive territories available.
Territory size: 5-10 miles

Costs and Fees

Total investment: $2.9M-3.3M
Franchise fee: $25K
Ongoing royalty fee: 4%
Term of agreement: 10-15 years, renewable


Type of Financing Available
In-House Third Party
Franchise Fee No Yes
Startup Costs No Yes
Equipment No Yes
Inventory No Yes
Accounts Receivable No No
Payroll No No

Third-party financing source(s): various sources

Qualifications
Net worth requirement: $1.5M
Cash liquidity requirement: $300K
Business Experience:
  • General business experience

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)

Training and Support

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

Rankings

Franchise 500® rank:
#80 (2009); #98 (2006); #94 (2005);

America's Top Global Franchises:
#67 (2009); #87 (2006); #71 (2005);


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