How much does a Motel 6 franchise cost in 2026?

Last updated: By Nate Solomon, Matthews Hotel Markets

G6 Hospitality Franchising's Motel 6 disclosure document, issued March 5, 2026 and amended August 1, 2026, estimates $195,259 to $1,600,000 to renovate a 100-room motel into a Motel 6, and $6,251,265 to $8,900,000 to build one, before land or acquisition costs. The franchise fee is $25,000. The royalty is 5 percent, the program fee 3 percent and the reservation fee 1 percent of gross room revenues.[1]

Key takeaways

  • Franchise fee: currently $25,000, plus a $5,000 application fee, a $1,950 PIP or site evaluation fee, and opening fees of $4,750 and $4,600.[1]
  • Royalty: 5 percent of gross room revenues. Program fee: currently 3 percent. Reservation fee: currently 1 percent.[1]
  • Transfer: a $5,000 transfer application fee plus a transfer franchise fee of currently $12,500.[1]
  • Term: 15 years for a conversion, 20 years for a new build, with a 10-year renewal.[1]
  • Fees change every year. The current FDD and the signed franchise agreement govern, not this page.

What does Motel 6 charge up front for a franchise?

The 2026 Motel 6 FDD lists a franchise fee of currently $25,000, payable on signing, plus a $5,000 application fee.[1]

A conversion also pays a $1,950 PIP fee for the franchisor to prepare the property improvement plan, and a new build pays the same amount as a site evaluation fee. The opening package fee is currently $4,750 and the opening assistance fee $4,600. Item 7 totals these initial fees at $41,300 for a 100-room motel (Item 5, pp. 9-10; Item 7, pp. 22-23).[1]

The franchisor says it may reduce the franchise fee, in its sole discretion, for existing Motel 6 or Studio 6 franchisees in compliance, for owners signing several agreements at once, for market conditions, or for an applicant who qualifies for its LIGHT THE WAY incentive program. An inspection or re-inspection before opening is $3,000 to $5,000, and an opening extension is $2,500 to $5,000 for every six months. The FDD also says all fixed dollar amounts may be adjusted each year for changes in the Consumer Price Index (Item 5, pp. 9-11; Item 6, p. 21).[1]

What are the ongoing Motel 6 franchise fees?

The 2026 Item 6 lists a 5 percent royalty, a program fee of currently 3 percent and a reservation fee of currently 1 percent, all on gross room revenues.[1]

The two smaller fees can move. The program fee may rise by no more than 0.5 percent in any 12-month period, to a maximum of 5.5 percent over the term. The reservation fee may rise on the same pace to a maximum of 2 percent. Gross room revenues are gross receipts from the rental of authorized guest rooms, collected or not, and are not reduced by credit card commissions, bad debts or refunds (Item 6, pp. 11-12, 21).[1]

Technology is charged per room. The IT services fee is currently $400 per month plus $4.00 per authorized guest room per month, and the property management software fee is $4.00 per room per month. Each can rise to $6.00 per room. Booking fees and travel agency commissions currently run up to 20 percent of the room rate on the bookings they apply to. Direct connect channel fees are $1.50 to $2.50 per reservation, and the mandatory call transfer program is 3.5 percent of consumed revenue, capped at $6.95 per call. The annual conference fee is $1,850 to $5,000 per motel (Item 6, pp. 12-14, 16).[1]

The Item 6 table lists no loyalty program charge. Revenue management for hire is optional at $499 to $1,999 per month by tier (Item 6, p. 13).[1] These charges apply to different bases, so they cannot be added into one rate.

How much does it cost to convert to or build a Motel 6?

The 2026 Item 7 estimates $195,259 to $1,600,000 to renovate a 100-room motel, which the FDD states as $1,953 to $16,000 per guest room.[1]

Construction expenses for a renovation run from $0 to $620,000 and furniture, fixtures and equipment from $17,500 to $430,000, each with its own contingency line. Signage is $5,830 to $60,500, and three months of additional funds are $110,000 to $175,000. A footnote prices a renovation to the older Motel 6 Classic scheme at $709,479 to $2,145,596 (Item 7, pp. 22-25).[1]

New construction of a 100-room motel on the current prototype is estimated at $6,251,265 to $8,900,000, or $62,513 to $89,000 per guest room. Both totals exclude land and acquisition costs, and the franchisor gives no estimate for buying an existing motel to convert. It says a new construction motel typically needs about 1 acre (Item 7, p. 23).[1] Financing for this work is covered at brand conversion financing and PIP and renovation loans.

How long is a Motel 6 franchise agreement, and can I get out early?

The Motel 6 term is 15 years for a conversion or 20 years for a new build, measured from the opening date, with a 10-year renewal the franchisor may allow.[1]

Renewal requires compliance, a renewal application and application fee of currently $5,000, a renewal franchise fee of currently $12,500, training, a PIP, a general release and the then current form of agreement, which may be materially different (Item 6, p. 20; Item 17, p. 44).[1]

The franchisee has two exits in Item 17. One follows a casualty that would cost more than 50 percent of the motel's fair market value to repair, with no liquidated damages if notice is given within 60 days. The other opens in or after the 25th month from opening, on advance notice and payment of any applicable liquidated damages, and only if the motel has met guest satisfaction and quality standards, stayed in compliance, joined all advertising campaigns, and run at or below the occupancy level written into its agreement for the prior 12 months. The FDD adds that the franchisor may negotiate mutual termination windows without liquidated damages in some cases (Item 17, p. 45).[1]

What does it cost to leave the Motel 6 system early?

Motel 6 liquidated damages are currently the greater of $2,000 per authorized guest room or 24 times the average monthly royalty, program and reservation fees accrued over the prior 12 full months.[1]

They are payable immediately if the agreement ends early through the franchisee's default, including a failure to open. The same table carries a separate line, lost future profits for early termination, stated as gross operating revenue minus operating expenses, multiplied by the months remaining in the term, payable if the franchisee stops operating under the marks or loses possession of the motel. An owner who does not de-identify owes $50 per authorized guest room per day plus the cost of removing signs. Reconnection to the reservation system after a default is up to $2,500 (Item 6, pp. 18-19).[1] Anyone weighing an exit should have franchise counsel read both damages lines in the agreement itself.

What happens to the Motel 6 franchise when I sell the motel?

The buyer pays a transfer application fee of currently $5,000 and a transfer franchise fee of currently $12,500, which the FDD describes as generally 50 percent of the then current franchise fee.[1]

That transfer fee buys the remainder of the seller's term. A buyer who wants a longer term may pay an additional fee of up to $12,500, which brings the total to the franchise fee for a new franchise. The buyer also pays a $1,950 PIP fee, a transfer package of up to $4,600 and training and assistance of up to $4,750. The fee drops to $2,500 when a majority owner buys out a minority owner (Item 6, pp. 19-21).[1]

Conditions include a qualified buyer, the then current agreement, a guarantee from the buyer's owners, a general release from the seller, manager training and conformity with current standards. The franchisor holds a right of first refusal to buy the motel on the terms of a bona fide offer. A lender comfort letter is $1,000 to $1,500, and a rush document request adds $1,000 to $2,500 (Item 6, p. 16; Item 17, p. 47).[1] The flag decision is weighed at Should I buy a branded or independent hotel?.

What does Item 19 say about Motel 6 performance?

The 2026 Item 19 reports that 1,119 franchised Motel 6 locations averaged 57.01 percent occupancy, a $68.69 average daily rate and $39.23 RevPAR in 2025.[1]

The sample is the franchised motels in the United States that had operated as franchised properties for at least two full years at December 31, 2025. The median RevPAR was $35.84, the range was $4.90 to $145.24, and 451 motels, or 42.9 percent, met or exceeded the average. A second chart covers the 539 motels, about 48.2 percent of the sample, that held the franchisor's internal A or B ranking. They averaged 68.3 percent occupancy, a $71.02 average daily rate and $48.49 RevPAR. Item 20 counts 1,197 franchised outlets at the end of 2025 (Item 19, pp. 49-50; Item 20, p. 51).[1]

The franchisor says the data comes from its internal records based on information franchised locations supplied electronically, that it has not audited the franchisee data, and that there is no assurance a buyer will achieve the stated results. Item 19 gives rate, occupancy and revenue measures only. It gives no expenses and no profit, and this page draws no profit conclusion from it (Item 19, p. 50).[1] The measures are defined at RevPAR and ADR.

Motel 6 franchise fees, 2026 FDD issued March 5, 2026, as amended August 1, 2026

Motel 6 franchise fees, 2026 FDD issued March 5, 2026, as amended August 1, 2026
FeeAmountWhere in the FDD
Application feeCurrently $5,000[1]Item 5, p. 9
Franchise feeCurrently $25,000[1]Item 5, p. 9
PIP fee (conversion) or site evaluation fee (new construction)Currently $1,950[1]Item 5, p. 9
Opening package fee and opening assistance feeCurrently $4,750 and $4,600[1]Item 5, pp. 9-10
Royalty fee5% of gross room revenues[1]Item 6, p. 11
Program feeCurrently 3% of gross room revenues, maximum 5.5%[1]Item 6, p. 12
Reservation feeCurrently 1% of gross room revenues, maximum 2%[1]Item 6, p. 12
IT services feeCurrently $400 per month plus $4.00 per authorized guest room per month[1]Item 6, p. 12
PMS software feeCurrently $4.00 per authorized guest room per month[1]Item 6, p. 12
Booking fees and travel agency commissionsCurrently up to 20% of the total room rate and other commissionable charges[1]Item 6, p. 14
Transfer application fee and transfer franchise feeCurrently $5,000 and $12,500[1]Item 6, p. 19
Renewal application fee and renewal franchise feeCurrently $5,000 and $12,500, for a 10-year renewal[1]Item 6, p. 20
Liquidated damages for early terminationGreater of $2,000 per authorized guest room or 24 times average monthly royalty, program and reservation fees[1]Item 6, p. 18
Estimated initial investment, 100-room renovation$195,259 to $1,600,000; $1,953 to $16,000 per guest room, excluding acquisition costs[1]Item 7, p. 23
Estimated initial investment, new 100-room motel$6,251,265 to $8,900,000; $62,513 to $89,000 per guest room, excluding land[1]Item 7, p. 23

Worked example

Hypothetical: a year of Motel 6 brand fees on assumed room revenue

Hypothetical. Assume a 100-room Motel 6 earns $1,400,000 of gross room revenues in a year. The revenue figure is an assumption for arithmetic. It is not a forecast and it is not a figure from the FDD.

Royalty fee at 5 percent: $1,400,000 x 0.05 = $70,000.[1]

Program fee at 3 percent: $1,400,000 x 0.03 = $42,000.[1]

Reservation fee at 1 percent: $1,400,000 x 0.01 = $14,000.[1]

Together: $126,000, or 9 percent of room revenue.

IT services fee: $400 + 100 rooms x $4.00 = $800 per month, or $9,600 for the year. PMS software fee: 100 rooms x $4.00 = $400 per month, or $4,800 for the year.[1]

On the same assumptions, 24 months of average fees is $126,000 / 12 x 24 = $252,000. That is more than $2,000 x 100 rooms = $200,000, so $252,000 would be the liquidated damages figure, before the separate lost future profits line.[1]

A buyer of the same motel would pay $5,000 + $12,500 + $1,950 = $19,450 in transfer application, transfer franchise and PIP fees, before the transfer package and training.[1] Booking fees, commissions and conference fees come on top, so they are not estimated here.

Frequently asked

How much does a Motel 6 franchise cost?
The 2026 FDD lists a $25,000 franchise fee, a $5,000 application fee, a 5 percent royalty, a 3 percent program fee and a 1 percent reservation fee. Item 7 estimates $195,259 to $1,600,000 to renovate a 100-room motel.[1]
What percent of revenue does Motel 6 take?
Currently 9 percent of gross room revenues: a 5 percent royalty, a 3 percent program fee and a 1 percent reservation fee. The program fee can rise to 5.5 percent and the reservation fee to 2 percent. Technology, booking fees and commissions come on top.[1]
I'm buying a Motel 6. What does the transfer cost?
Currently a $5,000 transfer application fee, a $12,500 transfer franchise fee for the seller's remaining term, and a $1,950 PIP fee, plus a transfer package of up to $4,600 and training of up to $4,750.[1]
How much does it cost to build a new Motel 6?
The 2026 Item 7 estimates $6,251,265 to $8,900,000 for a 100-room motel, or $62,513 to $89,000 per guest room, excluding land. The franchisor says a new motel typically needs about 1 acre.[1]
How long is a Motel 6 franchise agreement?
Fifteen years for a conversion and 20 years for a new build, from the opening date. The franchisor may allow a 10-year renewal for a renewal franchise fee of currently $12,500.[1]
Does Motel 6 charge a loyalty program fee?
The 2026 Item 6 table lists no loyalty program charge. It lists a program fee, a reservation fee, technology fees, booking fees and commissions.[1]
Will these Motel 6 fees be the same next year?
Not necessarily. The FDD is reissued every year, most fees are stated as current amounts, and the franchisor may adjust fixed dollar amounts each year for changes in the Consumer Price Index.[1]

Who wrote this

Nate Solomon

Hospitality Associate, Matthews Hotel Markets

(512) 839-6999nate.solomon@matthews.comLinkedIn

Reviewed by Luke Thompson, VP & Director, Capital Markets.

Sources

  1. Motel 6 Franchise Disclosure Document (issued March 5, 2026, as amended August 1, 2026): Item 5, pp. 9-11; Item 6, pp. 11-22; Item 7, pp. 22-26; Item 17, pp. 44-49; Item 19, pp. 49-50; Item 20, p. 51. Minnesota CARDS document 37091-202608-03, file number 5053, Clean FDD · G6 Hospitality Franchising LLC, filed with the Minnesota Department of Commerce · accessed September 18, 2026
  2. Matthews Hotel Markets September 2026 rate sheet · Matthews Hotel Markets · accessed September 18, 2026

Matthews Hotel Markets sells and finances franchised hotels, so we read these disclosure documents alongside owners and buyers.