Motel 6 vs Howard Johnson Franchise Comparison

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

Start-Up Costs and Fees
 
Motel 6 Franchise
Howard Johnson Franchise
Investment $206,850 - $8,823,850$336,552 - $9,898,595
Franchise Fee $25,000 - $35,000$35,000 - $38,000
Royalty Fee 5%4.5%
Advertising Fee 3.5%4%
Year Founded 19621925
Year Franchised 19961954
Term Of Agreement 10-15 years15-20 years
Term Of Agreement 10-15 years15-20 years
Renewal Fee 50% of current franchisee fee-


Business Experience Requirements
 
Motel 6 Franchise
Howard Johnson Franchise
Experience
  • General business experience
    		• -

    Financing Options
     
    Motel 6 Franchise
    Howard Johnson Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/YesNo/No
    Start-up Costs No/YesYes/No
    Equipment No/YesYes/No
    Inventory No/YesYes/No
    Receivables No/NoYes/No
    Payroll No/NoYes/No

    Training & Support
     
    Motel 6 Franchise
    Howard Johnson Franchise
    Training On-The-Job Training: 25-30 hours Classroom Training: 40 hours Additional Training: Annual convention Regional workshops
    Support Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Proprietary Software Franchisee Intranet PlatformNewsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives
    Marketing Co-op Advertising Ad Templates National Media Social media SEO Website development Email marketing Loyalty program/appCo-op advertising, National media, Regional advertising
    Operations 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)

    		 International franchisees required to buy multiple units/master licenses; 25% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 25

    Absentee ownership of franchise is allowed.

    Expansion Plans
     
    Motel 6 Franchise
    Howard Johnson Franchise
    US Expansion --
    Canada Expansion NoNo
    International Expansion YesYes

    Company Overviews

    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.




    About Howard Johnson

    With an advance of $500, Howard Dearing Johnson obtained a little patent drug shop in Quincy, Massachusetts, in 1925. He utilized an antiquated, hand-wrenched cooler in the store's storm cellar to make vanilla, chocolate and strawberry frozen yogurt for the shop's pop wellspring. After three years, with menu increases like franks and ground sirloin sandwiches, he opened the primary Howard Johnson's Restaurant. By 1935, there were 25 Howard Johnson frozen yogurt and sandwich remains in Massachusetts. After five years, with more than 100 eateries on the Atlantic Coast, Johnson opened the main road eatery on the Pennsylvania Turnpike. In 1954, when the organization worked 400 eateries, the primary Howard Johnson lodging opened in Savannah, Georgia. After Johnson's child assumed control over the organization in 1959, it was in this way procured by three unique organizations before Cendant Corp. purchased the inn network in 1990. Howard Johnson Int'l. establishments offer mid-evaluated holding up at Howard Johnson Plaza Hotels, Howard Johnson Hotels, Howard Johnson Inns and Howard Johnson Express Inns. Youngsters remain free at Howard Johnson, and Road Rally and AARP offer senior rebates at the lodgings.

    The total investment necessary to begin operation of a Howard Johnson franchise for a 100 room new construction facility ranges from $5,393,268 to $9,898,595.
    The total investment necessary to begin operation of a Howard Johnson franchise for a 100 room conversion facility ranges from $336,552 to $2,967,018.
    Land acquisition costs are not included in these ranges. The above amounts include a range of $43,600 to $72,925 that must be paid to the franchisor or an affiliate.

    #289 in Franchise 500 for 2020.