Ramada Worldwide vs Motel 6 Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Ramada Worldwide vs Motel 6 including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
Ramada Worldwide Franchise
Motel 6 Franchise
Investment $220,731 - $9,291,313$206,850 - $8,823,850
Franchise Fee $35,000$25,000 - $35,000
Royalty Fee 4.5%5%
Advertising Fee 4%3.5%
Year Founded 19541962
Year Franchised 19901996
Term Of Agreement 15-20 years10-15 years
Term Of Agreement 15-20 years10-15 years
Renewal Fee -50% of current franchisee fee


Business Experience Requirements
 
Ramada Worldwide Franchise
Motel 6 Franchise
Experience -
  • General business experience
    		•

    Financing Options
     
    Ramada Worldwide Franchise
    Motel 6 Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/NoNo/Yes
    Start-up Costs Yes/NoNo/Yes
    Equipment Yes/NoNo/Yes
    Inventory Yes/NoNo/Yes
    Receivables Yes/NoNo/No
    Payroll Yes/NoNo/No

    Training & Support
     
    Ramada Worldwide Franchise
    Motel 6 Franchise
    Training Regional workshopsOn-The-Job Training: 25-30 hours Classroom Training: 40 hours Additional Training: Annual convention
    Support Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluationsPurchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Proprietary Software Franchisee Intranet Platform
    Marketing Co-op advertising, Ad slicks, National media, Regional advertisingCo-op Advertising Ad Templates National Media Social media SEO Website development Email marketing Loyalty program/app
    Operations

    Number of employees needed to run franchised unit: 10 - 15

    Absentee ownership of franchise is allowed.

    		 10% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 10 - 20

    Absentee ownership of franchise is allowed. (70% of current franchisees are owner/operators)

    Expansion Plans
     
    Ramada Worldwide Franchise
    Motel 6 Franchise
    US Expansion --
    Canada Expansion NoNo
    International Expansion YesYes

    Company Overviews

    About Ramada Worldwide

    In 1954 a group of investors opened an inn in Flagstaff, Arizona, the first in a series of motor hotels to be opened by the group. Five years later, the chain was named Ramada, meaning 'a shaded resting place' in Spanish. Today Ramada, which has been owned by Cendant Corp. since 1997, operates hotels throughout the United States. The company is comprised of three segments, Ramada Inns, Ramada Limiteds and Ramada Plaza Hotels, serving value-conscious and mid-market travelers.

    Ramada Worldwide Inc. is a Delaware company, a backup of Wyndham Hotel Group, LLC, which is possessed by Wyndham Worldwide Corporation. They claim the exclusive Ramada System, giving transient visitor lodging administrations to the general population, including certain exchange names, benefit marks and other business images. They offer and bolster establishments for Ramada Chain visitor lodging offices.

    Establishment Offer: Qualified people are offered an establishment to work a Ramada Chain visitor lodging office at a solitary, characterized area. There are two distinct sorts of offices:

    1) A "Ramada" office offers agreeable alluring lodging at mid to upper mid-advertise rates in many markets, and has around 100 visitor rooms. A Ramada Facility highlights either a cordiality range with both relaxation seating and breakfast seating and administration territories and also a "Ramada Convenience Mart", or a full administration eatery and mixed drink relax. Ramada Facilities additionally have meeting rooms, ringer benefit upon demand, complimentary rapid web get to, clothing/valet benefit, a swimming pool and a wellness office.

    2) A "Ramada Plaza Hotel" office is an inside hall structure of no less than four stories. It by and large has no less than 150 visitor rooms, maybe a couple eateries, meal and meeting offices pleasing no less than 100 individuals, a mixed drink relax, a board room, swimming pool and practice offices, a business focus, a sundry shop, and chime, valet and room administrations.

    The total investment necessary to begin operation of a Ramada franchise for a new construction project ranges from the low end of $6,536,015 for a 100 room Ramada facility to the high end of $15,007,666 for a 150 room Ramada Plaza facility.
    The total investment necessary to begin operation of a Ramada franchise if you already own a facility typically ranges from the low end of $220,731 for a 100 room Ramada facility to the high end of $6,884,239 for a 150 room Ramada Plaza facility. Land acquisition costs are not included in these ranges. The above amounts include a range of $43,900 to $89,225 that must be paid to the franchisor or an affiliate.

    #276 in Franchise 500 for 2020.
    #368 in Franchise 500 for 2021.








    About Motel 6

    We'll Leave the Light on for You!
     Thanks to one of the most successful ad campaigns in the history of the hotel industry, Motel 6 enjoys strong brand awareness and high guest loyalty. After more than 40 years, Motel 6 is still a true American icon and continues to outperform the competition. Founded 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 economy motel designed for the no-frills traveler.
     The original price of a night's stay at Motel 6 was just $6.00, and thus established the brand name for an American classic. The promise of the lowest 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 economy lodging brand.
     The brand continues to grow and currently has approximately 1,200 locations with more than 120,000 rooms in the United States and Canada. Part of G6 Hospitality, Motel 6 is the largest owned and operated hotel chain in North America.

    Franchisor is seeking new franchise units throughout the U.S. and  Asia, Canada, Central America, Mexico and South America

    The total investment necessary to begin operation of a newly constructed 100 room Motel 6 Motel (excluding land acquisition costs) is $6,891,850 to $8,823,850 and a conversion 100 room Motel 6 Motel (excluding land acquisition costs) is $206,850 to $2,106,050. This includes $33,850 in fixed pre-opening fees, which must be paid to the franchisor or their affiliates.
    Veteran Incentives  $1,500 for training
    "Entrepreneur
    #96 in Franchise 500 for 2020.
    #197 in Franchise 500 for 2021.