Motel 6 Franchise Fee: $20,000 (2026)

About Motel 6

Motel 6 is America's largest owned-and-operated economy lodging chain with 1,400+ locations, founded in 1962 in Santa Barbara, California. Known for its 'We'll leave the light on for you' tagline, Motel 6 is owned by Blackstone/Oyo and is the definitive value lodging brand in the US.

Motel 6's conversion program — allowing existing hotels to rebrand as Motel 6 — reduces the buildout costs vs. new construction significantly. The brand's Tom Bodett radio advertising campaign created one of the most iconic taglines in American hotel history.

Fee Breakdown

Initial Franchise Fee	$20,000
Total Investment Range	$2.5M–$5.0M
Royalty Fee	5%
Marketing / Ad Fund	4.5%
Min. Net Worth	Contact franchisor
Liquid Capital Required	Contact franchisor

Based on publicly available FDD data. Always review current Franchise Disclosure Document before investing.

Pros & Cons

✅ Pros

✓ America's largest economy lodging brand with 60-year heritage
✓ Conversion program reduces buildout costs vs. new construction
✓ Iconic 'We'll leave the light on' brand recognition drives bookings
✓ Value segment is recession-resistant — travelers trade down in downturns

⚠️ Cons

✗ Economy segment has thin margins and requires high occupancy to profit
✗ Value travelers are highly price-sensitive and comparison-shop aggressively
✗ Property maintenance standards in economy lodging are significant

Frequently Asked Questions

How much is the Motel 6 franchise fee?

The Motel 6 initial franchise fee is $20,000. Total investment ranges from $2.5M–$5.0M.

What is the total cost to open a Motel 6 franchise?

Total investment to open a Motel 6 franchise ranges from $2.5M–$5.0M, including the $20,000 franchise fee, real estate, build-out, equipment, and working capital.

What is Motel 6's ongoing royalty fee?

Motel 6 charges a royalty of 5% on gross sales. An additional 4.5% marketing fund contribution is also required.

Is Motel 6 a good franchise to own?

Motel 6 has an established brand and proven business model. Review the current Franchise Disclosure Document (FDD) and speak with existing franchisees to evaluate whether it fits your market and goals.

How do I apply for a Motel 6 franchise?

To apply for a Motel 6 franchise, contact their franchise development team directly or submit a request through our contact form. You'll need to meet their financial qualification requirements and complete their discovery process.

Want help finding the right franchise?

Get Free Franchise Consultation

Motel 6 Franchise Fee (2026)