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Motel 6

A franchisee is a powerful and effective process that includes the marketing, sale and distribution of products as well as services. Experience of the franchisor and the goodwill of the brand are the vital attributes of a successful franchisee. The franchisor licenses the trademarks and techniques of doing business and performs the distribution of products or services through his associated dealers.

Motel 6 was established in 1962 in Santa Barbara, California. Motel 6 is synonymous with a great travel value. The first Motel 6 in Santa Barbara still leaves the light on today, but a lot has changed for the motel chain that pioneered the first real budget motel designed for the no-frills traveler. The original price of a night's stay at Motel 6 was just 6.00 dollars and thus established the brand name for an American classic.

The promise of the best price of any national chain and a clean, comfortable room are Motel 6 virtues. Motel 6 is a household name, synonymous with quality and value. It enjoys the highest brand recognition factor of any budget-lodging brand.

Motel 6 started franchising in 1996. Franchisor is a privately-held company with 500 employees and 29 employees in franchise department. The brand continues to grow and currently has more than 840 locations with over 87,000 rooms in the United States and Canada. As part of the Accor family, Motel 6 is now the largest owned and operated hotel chain in North America. Accor is the largest hotel operator in the world with nearly 4,000 hotels in 90 countries.

The total investment required for this franchise varies from 1.9 to 2.3 millions and franchise fee is 25,000 dollars. The ongoing royalty fee is 4 percent. The term of agreement is of 10 to 15 years and is renewable. The renewal fee is 50 percent of current franchise fee. Their ranking in entrepreneur magazine of 2002 to 2006 is 98 in 2006, 94 in 2005, 87 in 2004 and 78 in 2003.

Accor Economy Lodging AEL is comprised of Red Roof Inns, Motel 6 and Studio 6 with over 1100 locations throughout the United States and Canada. AEL now represents over 10 percent of the budget lodging segment in the United States. AEL brands enjoy some of the highest brand loyalty and advertising awareness ratings in the country.

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